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odevy 1 and 2 De differentiation, Strike Company makes a high-end goir club co smack Sko Company presents the following data for the years Units of Smack produced and sold Year 1 Year 2 20,000 Selling price 21.200 $210 $225 Direct materials (square metres) 55.000 60,000 Direct materials costs per square metre $18 $24 Manufacturing capacity for Smack (units) 24,000 25 000 Total manufacturing conversion costs $763,000 S850,000 Manufacturing conversion costs (per unit of capacity) $32 $34 Seling and customer service capacity (customers) 80 70 Total selling and customer service costs $436,000 $378,000 Cost por customer of selling and customer service capacity $5.450 55.400 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 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. Neither corversion 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 high-end golf clubs increased 5% trom year 1 to year 2. What is the Strike Company's cost effect of prion-recovery component? O A. $241,000 unfavourable O B. $393,800 unfavourable OC. $420,000 favourable D. $238,000 unfavourable E. $393,800 favourable O o