l. 2. 3. 4. 5. 6. 7. 8. 9. 10. Units produced and sold Selling Price Direct materials (square feet) Direct materials cost per square foot Manufacturing capacity Conversion costs Conversion cost per unit of capacity (6 + 5) Selling & customer service capacity Selling & customer service costs Cost per customer of selling & service capacity (9+8) 2018 40,000 P 100 120,000 P 10 50,000 units P 20 30 customers P 720 OOO P 24,000 2019 42,000 P 110 123,000 PII 50,000 units P 1 100 OOO P 22 29 customers P 725 OOO P 25,000 In 2019. Hi-Tech produced no defective units and reduced direct materials usage per unit of product. Conversion costs in each year are tied to manufacturing capacity. Selling and customer service costs are related to the number of customers that the selling and service ftnctions are designed to support. Hi-Tech has 23 customers (wholesalers) in 2018 and 25 customers in 2019.