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Diego Company manufactures one product that is sold for $ per unit in two
geographic regionsthe East and West regions. The following information pertains to
the company's first year of operations in which it produced units and sold
units.
The company sold units in the East region and units in the West region. It
determined that $ of its fixed selling and administrative expenses is traceable to
the West region, $ is traceable to the East region, and the remaining $ 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?
