Required information [The following information applies to the questions displayed below.] Diego...

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Accounting

Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $80 per unit in two
geographic regions-the East and West regions. The following information pertains to
the company's first year of operations in which it produced 40,000 units and sold 35,000
units.
The company sold 25,000 units in the East region and 10,000 units in the West region. It
determined that $250,000 of its fixed selling and administrative expenses is traceable to
the West region, $150,000 is traceable to the East region, and the remaining $96,000 is
a common fixed cost. The company will continue to incur the total amount of its fixed
manufacturing overhead costs as long as it continues to produce any amount of its only
product.
What is the company's net operating income (loss) under absorption costing?
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