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5. Foley Products Company makes a household appliance with model number X500. The goal for 2018 is to reduce direct materials usage per unit. No

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5. Foley Products Company makes a household appliance with model number X500. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2017 to 2018. The following additional data are available for 2017 and 2018 Units of X500 produced and sold Selling price Direct materials (square feet) Direct material costs per square foot Manufacturing capacity for X500 (units) Total conversion costs Conversion costs per unit of capacity 2017 16,000 $140 36,000 $10 12,500 $350,000 $28 2018 17,600 $133 35,000 $13 11,800 $330,400 $28 What is operating income for 2017

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