(4 points) Husquvarna makes a chainsaw makes a chainsaw with model number W500. The goal for 2015 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of W500 units that can be produced. The industry market size for chainsaws increased 5% from 2014 to 2015. The following additional data are available for 2014 and 2015:

	2014	2015
Units of W500 produced and sold	10,000	10,500
Selling price	$100	$95
Direct materials (square feet)	30,000	29,000
Direct material costs per square foot	$10	$11
Manufacturing capacity for W500 (units)	12,500	12,000
Total conversion costs	$250,000	$240,000
Conversion costs per unit of capacity	$20	$20

What is the cost effect of the growth component for direct materials?

Group of answer choices

A. $16,500 F

B. $15,000 U

C. $10,000 U

D. $10,000 F

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