Chapter 12) Following strategy of product differentiation, exy's Limited Company high end Appliance, XT15. trzy Limited presents the following data for the years 2017 and 2016: Units of XT15 produced and 2017 2015 sold Selling price per unit $400 $470 Direct materials (square feet) 160,000 163,400 Direct materials costs per $51 $57 square foot Manufacturing capacity in units 62,500 62,500 of XT15 Total conversion costs $6,875,000 $7,250,000 Conversion costs per unit of $110 $116 capacity Selling and customer service 180 180 capacity (customers) Total selling and customer $2,772,000 $2,893,500 service costs Selling and customer-service $15.400 $16.075 capacity cost per customer Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 165 customers in 2017 and 170 customers in 2018. What is the growth variance (that is, how much did operating income change as a result of growth)? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.) Chapter 12) Following strategy of product differentiation, exy's Limited Company high end Appliance, XT15. trzy Limited presents the following data for the years 2017 and 2016: Units of XT15 produced and 2017 2015 sold Selling price per unit $400 $470 Direct materials (square feet) 160,000 163,400 Direct materials costs per $51 $57 square foot Manufacturing capacity in units 62,500 62,500 of XT15 Total conversion costs $6,875,000 $7,250,000 Conversion costs per unit of $110 $116 capacity Selling and customer service 180 180 capacity (customers) Total selling and customer $2,772,000 $2,893,500 service costs Selling and customer-service $15.400 $16.075 capacity cost per customer Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 165 customers in 2017 and 170 customers in 2018. What is the growth variance (that is, how much did operating income change as a result of growth)? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
