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Answer the Following Questions Using the Information Below:
Crynton Company

question 144

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Answer the following questions using the information below:
Crynton Company makes a household appliance with model number L800. 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 L800 units that can be produced. The industry market size for appliances increased 5% from 2014 to 2015. The following additional data are available for 2014 and 2015:
20142015 Units of L800 produced and sold 30,00031,500 Selling price $300$285 Direct materials (square feet)  90,00087,000 Direct material costs per square foot $30$33 Manufacturing capacity for L800 (units)  37,50036,000 Total conversion costs $750,000$720,000 Conversion costs per unit of capacity $60$60\begin{array}{lrr}&2014&2015\\\text { Units of L800 produced and sold } & 30,000 & 31,500 \\\text { Selling price } & \$ 300 & \$ 285 \\\text { Direct materials (square feet) } & 90,000 & 87,000 \\\text { Direct material costs per square foot } & \$ 30 & \$ 33\\\text { Manufacturing capacity for L800 (units) } & 37,500 & 36,000 \\\text { Total conversion costs } & \$ 750,000 & \$ 720,000 \\\text { Conversion costs per unit of capacity } & \$ 60 & \$ 60\end{array}
-What is the revenue effect of the growth component?

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