Assume that in 2016, Dubbledore Industries changed its processes and trained workers to recognize quality problems and fix them before products are finished and shipped to customers. Quality is now at an acceptable level. The selling price for its key product, RBK10, was increased in 2016 to reflect an increased price for direct materials and additional conversion costs needed to deliver a higher quality product. Sales have increased, even with the increase in price, and returns have decreased. Dubbledores' managers attribute this to higher quality and a price that is still less than their main competitor, Ginko Corporation.Information related to the RBK10 product for the current period and prior period follows:

2015 2016 Units of RBK10 produced and sold 19,000 21,500 Units returned 1,150 550 Net sales in units 17,850 20,950 Selling price $23 $26 Direct materials (kilograms) used 47,500 51,600 Direct material cost per kilogram $1.25 $1.35 Manufacturing capacity in units 23,000 23,000 Total conversion costs $115,000 $149,500 Conversion cost per unit of capacity $5 $6.5 Selling and customer-service capacity 100 customers 120 customers Total selling and customer-service costs Total selling and customer-service capacity cost per customer Advertising staff Total advertising costs Advertising cost per employee $11,000 $12,600 $110 $105 4 4 $24,000 $28,000 $6,000 $7,000