Please explain which option is correct and show step by step. Thank you!

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: 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 2017 58,000 $400 156,000 $55 63,700 $6,688,500 $105 160 $2,432,000 2018 60,500 $470 159,500 $62 63,700 $7,325,500 $115 160 $2,532,000 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 $105 160 $2,432,000 $15,200 $115 160 $2,532,000 $15,825 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 net effect on operating income as a result of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)