Andretti Company has a single product called a Dak. The company normally produces and sells 89,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below: Direct materials S 8.50 Direct labor 11.00 3.50 Variable manufacturing overhead 5.00 ($445,000 total Fixed manufacturing overhead Variable selling expenses 3.70 5.50 ($489,500 total Fixed selling expenses S 3720 Total cost per unit 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 sufficient capacity to produce 115,700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by S130,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) ncreased sales in units Contribution margin per unit contribution margin Less added fixed selling expense 0.00 Incremental net operating income 1-b. Would the increased fixed selling expenses be justified? No Yes