Following a strategy of product differentiation, AHB Corporation makes a high-end computer monitor, KT7. AHB Corporation presents the following data for the years 2020 and 2021: 2020 2021 Units of KT7 produced and sold 10,000 10,500 Selling price $280 $300 Direct materials (pounds) 31,600 33,600 $17 $20 Direct materials costs per pound Manufacturing capacity for KT7 (units) 10,900 10,900 Conversion costs (fixed costs) $654,000 $708,500 Conversion costs per unit of capacity $60 $65 Conversion costs (fixed costs) $654,000 $708,500 Conversion costs per unit of capacity $60 $65 Manufacturing conversion costs in each year depend on production capacity defined in terms of KT7 units that can be produced. Required: What is the net effect on operating income as a result of the growth component? $91,760 $126,700 $106,000 $113,140