Diego is considering eliminating the West region because an internally generated report suggests the region’s total gros

[answerhappygod]

Diego is considering eliminating the West region because an
internally generated report suggests the region’s
total gross margin in the first year of
operations was $10,000 less than its traceable fixed selling and
administrative expenses. Diego believes that if it drops the West
region, the East region's sales will grow by 6% in Year 2. Using
the contribution approach for analyzing segment profitability and
assuming all else remains constant in Year 2, what would be the
profit impact of dropping the West region in Year 2? Assume
the West region invests $31,000 in a new advertising campaign in
Year 2 that increases its unit sales by 20%. If all else remains
constant, what would be the profit impact of pursuing the
advertising campaign?