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: $51 2017 2018 Units of XT15 produced and sold 58,000 60,200 Selling price $500 $570 Direct materials (square feet) 158,000 161,750 Direct materials costs per square $57 foot Manufacturing capacity in units of 62,900 62,900 XT15 Total conversion costs $6,290,000$6,856,100 Conversion costs per unit of capacity $100 $109 Selling and customer-service capacity 150 150 (customers) Total selling and customer-service $2,295,000$2,396,250 costs Selling and customer-service capacity $15,300 $15,975 cost per customer 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 140 customers in 2017 and 145 customers in 2018. What is operating income in 2018? $15,921,775 $15,841,900 $7,463,500 $9,212,000