Following a strategy of product differentiation, ABC corp makes a high end kitchen range hood, AT4. ABC's data for 2019 and 2020 follow: 1.Units of AT4 produced and sold 2.Selling price 2019 2020 40,000 42,000 P100 P110 120,000 123,000 3.Direct materials (square meter) 4.Direct materials per square meter 5.Manufacturing capacity for AT4 6.Total conversion cost 7.Conversion cost per unit of capacity (row 6/row5) 8. Selling and customer service capacity 9. Total selling and customer service costs 10. Cost per customer of selling and customer service cost(row 9/row 8) P10 50,000 units P1,000,000 P20 30 customers P720,000 P24,000 P11 50,000 units P1,100,000 P22 29 customers P725,000 P25,000 ABC produced no defective goods and reduced direct material usage per unit of AT4 in 2020. 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 functions are designed to support. ABC has 23 customers (wholesalers) in 2019 and 25 customers in 2020. Operating Income for each is determined as follows: 2019 2020 Revenues(P100XP40,000; P110X 42,000) P4,000,000 P4,620,000 Cost: Direct Materials (P10X120,000; P11X123,000) | 1,200,000 1,353,000 Conversion costs(P20X50,000; P22X50,000) 1,000,000 1,110,000 Selling and customer service cost 720,000 725,000 (P24,000X30; P25,000 X29) Total Cost Operating income Prepare an analysis on the change in operating income. 2,920,000 3,178,000 P1,080,000 P1,442,000