Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below $ 7.50 10.00 3.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 10.00 (810,000 total) 2.70 5.50 ($445,500 total) Total cost per unit s 39.20 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a Assume that Andretti Company has suficient capacity to produce 109,350 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% above the present 81,000 units each year if it were wiling to increase the fixed selling expenses by $140000 Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) Increased sales in units Contribution margin per uni Incremental contribution margin Less added fixed selling expense Incremental net operating income $0.00 1-b. Would the increased fixed selling expenses be justified? No Yes