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 59,000 62,500 Selling price $600 $650 Direct materials (square feet) 152,000 155,500 Direct materials costs per square foot $60 $68 Manufacturing capacity in units of XT15 62,900 62,900 Total conversion costs $6,290,000 $6,730,300 Conversion costs per unit of capacity $100 $107 Selling and customer-service capacity (customers) 170 170 Total selling and customer-service costs $2,567,000 $2,669,000 Selling and customer-service capacity cost per customer $15,100 $15,700 Izzy's Limited produces no defective units but it wants to reduce direct materials used per unit of XT15. Manufacturing conversion costs in each year depending on the 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 160 customers in 2017 and 165 customers in 2018. What is the net effect on operating income as a result of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.) A. $1,545,000 U B. $1,292,700 U C. $1,545,000 F D. $1,292,700 F