Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $42 per unit. The company's unit costs at this level of activity are given below: Direct materials 7.50 Direct labor 9.00 Variable manufacturing overhead 3.30 7.00 ($609,000 total) Fixed manufacturing overhead Variable selling expenses 2.70 Fixed selling expenses 4.50 ($391,500 total) 34.00 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 108,750 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 87,000 units each year if it were willing to increase the fixed selling expenses by $130,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places. Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense incremental net operating income