Faley Products Company makes a household appliance with model number X500. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 20% from 2019 to 2020. The following additional data are available for 2019 and 2020 Units of X500 produced and sold Selling price Direct materials (square feet) Direct material costs per square foot Manufacturing capacity for X500 (units) Total conversion costs Conversion costs per unit of capacity 2019 2020 12,000 14,400 $105 $99 32,000 30,000 $14 $17 12.700 12,000 $266,700 $252,000 $21 $21 OA. $612,000 OB. $545,300 Oc. $1,260,000 OD. $993,300 201 2020 Units of X500 produced and sold 12,000 14.400 Selling price $105 $99 Direct materials (square feet) 32,000 30,900 Direct material costs per square foot $14 Manufacturing capacity for X500 (units) Total conversion costs 12,700 $17 12,000 $266,700 $252,000 Conversion costs per unit of capacity $21 21 $21 What is operating income for 2019? OA. $812,000 OB. $545,300 OC. $1,260,000 OD. $993,300 m