BarGraphs Corp. had capacity to produce 18,000 units of L3 using 60,000 kg of direct materials. BarGraphs produced 17,750 units of L3 by processing 57,500 kg of direct materials. Conversion cost per unit is $10.50. BarGraphs can add or reduce manufacturing capacity in increments of 2.500 kgs. What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by 2,500 kgs? OA. $7,875 OB. $3,150 OC. $2.625 OD. $2,500