Diego Company manufactures one product that is sold for $72 per unit in two geographic regions—the East and West regions

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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 55,000 units and sold 50,000
units.
The company sold 37,000 units in the East region and 13,000
units in the West region. It determined that $290,000 of its fixed
selling and administrative expense is traceable to the West region,
$240,000 is traceable to the East region, and the remaining $77,000
is a common fixed expense. 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.
5. What is the company’s total gross margin under absorption
costing?