Strike Company follows a strategy of product differentiation. It makes a high quality golf club called Smack. Strike Company presents the following data for the years 1 and 2 Year 1 Year 2 Units of Smack produced and sold Selling price Direct materials (square metres) Direct materials costs per square metre Manufacturing capacity for Smack (units) Total manufacturing conversion costs Manufacturing conversion costs (per unit of capacity) muntamer Conca connritur customers 20,000 $210 55,000 $18 24,000 $768,000 21,200 $225 60,000 $24 25,000 $850,000 $34 70 $32 80 UR Total selling and customer-service costs $436,000 $378,000 Cost per customer of selling and customer-service capacity $5,450 $5,400 Strike Company produces no defective units but it wants to reduce direct materials usage per unit of Smack in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of Smack 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. Neither conversion costs or customer-service costs are affected by changes in actual volume Strike Company has 46 customers in year 1 and 50 customers in year 2 The industry market size for golf clubs increased 5% from year 1 to year 2 What is the Strike Company's change in operating income from year 1 to year 2? O A. $200,000 favourable OB. $96,000 favourable O C. $364.500 favourable OD. $364,500 unfavourable O E. $200,000 unfavourable Strike Company follows a strategy of product differentiation. It makes a high quality golf club called Smack. Strike Company presents the following data for the years 1 and 2 Year 1 Year 2 Units of Smack produced and sold Selling price Direct materials (square metres) Direct materials costs per square metre Manufacturing capacity for Smack (units) Total manufacturing conversion costs Manufacturing conversion costs (per unit of capacity) muntamer Conca connritur customers 20,000 $210 55,000 $18 24,000 $768,000 21,200 $225 60,000 $24 25,000 $850,000 $34 70 $32 80 UR Total selling and customer-service costs $436,000 $378,000 Cost per customer of selling and customer-service capacity $5,450 $5,400 Strike Company produces no defective units but it wants to reduce direct materials usage per unit of Smack in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of Smack 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. Neither conversion costs or customer-service costs are affected by changes in actual volume Strike Company has 46 customers in year 1 and 50 customers in year 2 The industry market size for golf clubs increased 5% from year 1 to year 2 What is the Strike Company's change in operating income from year 1 to year 2? O A. $200,000 favourable OB. $96,000 favourable O C. $364.500 favourable OD. $364,500 unfavourable O E. $200,000 unfavourable