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 Units of XT15 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of XT15 Total conversion costs Conversion costs per unit of capacity Selling and customer service capacity (customers) Total selling and customer service costs 50,000 $700 159,000 $57 63,100 $6,688,600 $106 160 $2,432,000 En 2018 53,500 $750 162,200 $65 63,100 $7,130,300 $113 160 $2,528,000 LEOA O A. $1,898,740 U OB. $634,410 F O C. $634,410 U OD. $1,898,740 F Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of XT15 Total conversion costs Conversion costs per unit of capacity Selling and customer-service capacity (customers) Total selling and customer service costs Selling and customer service capacity cost per customer 159,000 $57 63,100 $6,688,600 $106 160 $2,432,200 $15,200 162,200 $65 63,100 $7,130,300 $113 160 $2,528,000 $15,800 ep. to th 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 had 145 customers in 2017 and 150 customers in 2018 What is the cost effect of the price recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar) Qu O A. $1,898,740 U OB. $634,410 F OC. $634.410 U OD. $1,898,740 F ate thies Hale nce rate n's a