Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 1 and 2. Units of XX 300 produced and sold Selling price Direct materials (litres) Direct materials costs per litre Manufacturing capacity for XX 300 (units) Total manufacturing conversion costs Manufacturing conversion costs (per unit of capacity) Selling and customer-service capacity (customers) Total selling and customer-service costs Cost per customer of selling and customer-service capacity YEAR 1 YEAR 2 10,000 10,800 $100 $115 30,000 31,900 $15 $16 12,500 12,500 $250,000 $275,000 $20 $22 30 29 $90,000 $90,625 $3,000 $3,120 Barry Company produces no defective units, but it wants to reduce direct materials usage per unit of XX 300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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. Neither conversion costs nor customer-service costs are affected by changes in actual volume. Barry Company has 23 customers in year 1 and 25 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2. What is the Barry Company's revenue effect of price-recovery component? A. $162,000 favourable B. $54,000 unfavourable C. $92,000 favourable D. $50,000 unfavourable E. $54,000 favourable