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Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arsenia presents...

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Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arsenia presents the following data for the years 2014 and 2015: 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 Selling and customer-service capacity cost per customer 2014 51,000 $1000 152,000 $59 62600 $6,322,600 $101 180 $2,736,000 $15,200 2015 54,500 $1060 155,400 $64 62600 $6,760,800 $108 180 $2,848,500 $15,825 Arsenia 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. Arseniq had 165 customers in 2014 and 170 customers in 2015. What is the net effect on operating income as a result of the price-recovery component

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