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Diego Company manufactures one product that is sold for $72 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 43,000 units and sold 38,000 units.
Variable costs per unit: Manufacturing:
Direct materials
22
Direct labor
14
Variable manufacturing overhead
3
Variable selling and administrative
5
Fixed costs per year:
Fixed manufacturing overhead
$ 774,000
Fixed selling and administrative expense
$ 346,000
Question 1: What would have been the company's variable costing net operating income (loss) if it had produced and sold 38,000 units? You do not need to perform any calculations to answer this question.
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