Diego Company manufactures one product that is sold for $75 perunit in two geographic regions—the East and West regions. Thefollowing information pertains to the company’s first year ofoperations in which it produced 46,000 units and sold 42,000units.

Variable costs per unit:
Manufacturing:
Directmaterials	$	25
Directlabor	$	20
Variablemanufacturing overhead	$	2
Variableselling and administrative	$	4
Fixedcosts per year:
Fixedmanufacturing overhead	$	644,000
Fixedselling and administrative expense	$	388,000

The company sold 31,000 units in the East region and 11,000units in the West region. It determined that $200,000 of its fixedselling and administrative expense is traceable to the West region,$150,000 is traceable to the East region, and the remaining $38,000is a common fixed expense. The company will continue to incur thetotal amount of its fixed manufacturing overhead costs as long asit continues to produce any amount of its only product.

6a. What is the company’s net operating income (loss) underabsorption costing?

6b.What is the amount of the difference between the variablecosting and absorption costing net operating incomes (losses)?

6c. What is the company’s break-even point in unit sales?

6d. . If the sales volumes in the East and West regions had beenreversed, what would be the company’s overall break-even point inunit sales?

6e. What would have been the company’s variable costing netoperating income (loss) if it had produced and sold 42,000 units?You do not need to perform any calculations to answer thisquestion.