Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy;s Limited presents the following data for the years 2017 and 2018:

	2017	2018
Units of XT15 produced and sold	56,000	58,000
Selling price	400	430
Direct materials (square feet)	157000	160200
Direct materials costs per square foot	54	58
Manufacturing capacity in units of XT 15	63100	63100
Total conversion costs	6436200	6751700
Conversion costs per unit of capacity	102	107
Selling and customer-service capacity (customers)	170	170
Total seling and customer-service costs	2635000	2737000
Selling and customer-service cost per customer	15500	16100

?Izzy's Limited 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.? Izzy's Limited had160 customers in 2017 and165 customers in 2018.

What is operating income for? 2017?

A. $4,850,800

B. $6,159,700

C. $7,485,800

D. $5,005,800