Can I please get help on how to calculate;

2018 2019

Units produced and sold 6,000 6,500

Selling price $420 $440

Direct materials (pounds) 16,000 16,375

Direct materials costs per pound $40 $44

Manufacturing capacity (units) 10,000 10,000

Conversion costs $1,000,000 $1,100,000

Conversion costs per unit of capacity $100 $110

Selling and customer-service capacity (customers) 62 60

Total selling and customer-service costs $361,000 $363,500

Selling and customer-service capacity cost

per customer $6,500 $6,750

a. Calculate the revenue effect and cost effect (variable and fixed costs effects) of the price-recovery component, and the net effect on operating income as a result of the price-recovery component. Comment on what these components indicate