All of these are part of the same question. they are not different questions and answering all three parts does not violate guidelines. If you are not going to answer all parts of the one question, please do not bother answering at all.

Household Products Company makes an appliance with model number XT2000.

The goal for 2020is to reduce direct materials usage per unit.

No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of XT2000 units that can be produced.

The industry market size for appliances increased 15% from 2019 to 2020.

The following additional data are available for 2019 and 2020:

Required:

a. What is the revenue effect of the growth component?

b. What is the cost effect of the growth component for direct materials?

c. What is the cost effect of the growth component for conversion costs? d. Overall, was Household Products strategy successful in 2020? Consider changes in revenue, material costs, conversion costs, and operating income.

2019 Units of XT2000 produced and sold 33,000 Selling price $360 Direct materials (square feet) 90,000 Direct material costs per square foot $31 Manufacturing capacity for XT2000 (units) 41,250 Total conversion costs $866,250 Conversion costs per unit of capacity $29 2020 37,950 $345 87,000 $33 39,850 $836,850 $29