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Question 4 Time left 1:01:32 Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited preservaron data for the
Question 4 Time left 1:01:32 Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited preservaron data for the years 2019 and 2020: Not yet answered Marked out of 1.00 Remove flag $400 2019 2020 Units of XT15 produced and sold 54,000 56,200 Selling price $470 Direct materials (square feet) 154,000 157,750 Direct material costs per square foot $51 $59 Manufacturing capacity in units of XT15 63,500 63,500 Total conversion costs $866,250 $836,850 Conversion costs per unit of capacity $102 $108 Selling and customer-service capacity (customers) 150 Total selling and customer-service costs $2,295,000 $2,388,750 Selling and customer-service capacity cost per customer $15,300 $15,925 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 160 customers in 2019 and 165 customers in 2020. 150 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.) Select one: O A $1,292,700 F O B. $1,545,000 F O C. $1,292,700 U O D. $1,545,000 0 2 In linear programming, a constraint is a mathematical inequality or equality that must be satisfied by the variables in a mathematical model. Select one: ut of O True O False e flag
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