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: Direct materials 8,50 Direct labor 11.00 Variable manufacturing overhead 3.60 800 ($648,000 total) Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 450 IS364,500 total) Total cost per unit 39.30 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 113,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 40% above the present 81,000 units each year if it were willing to increase the fixed selling expenses by $100,000. 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 1-b, Would the increased fixed selling expenses be justified? O Yes O No