Following a strategy of product differentiation, EDI Corporation makes a high-end computer monitor, CM5. EDI Corporation presents the following data for the years 2019 and 2020: 2019 2020 Units of CM5 produced and sold 10,000 10,800 Selling price $215 230 Direct materials (pounds) 23,000 25,000 Direct materials costs per pound $30 32 Manufacturing capacity for CM5 (units) 11,000 11,000 Conversion costs (fixed costs) $770,000 $803,000 Conversion costs per unit of capacity $70 73 Manufacturing conversion costs in each year depend on production capacity defined in terms of CM5 units that can be produced. Required: What is the net effect on operating income as a result of the growth component? $108,000 $166,000 $112.000 $116,800 $51,000