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Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015:

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Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015: Units of XT15 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of XT15 2014 59,000 $600 2015 61,500 $650 154,000 157,200 $60 $68 63,500 63,500 $6,985,000 $7,429,500 Conversion costs per unit of capacity Selling and customer-service capacity (customers) $110 190 $117 190 Total selling and customer-service costs $2,907,000 $3,030,500 Selling and customer-service capacity cost per customer $15,300 $15,950 Total conversion costs Arseniq 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. Arseniq had 175 customers in 2014 and 180 customers in 2015. What is the revenue effect of the growth component? $1,500,000 U $3,075,000 F O $3,075,000 U $1,500,000 F

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