Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $44 per unit. The companys unit costs at this level of activity are given below:

Direct materials	$	8.50
Direct labor		9.00
Variable manufacturing overhead		3.70
Fixed manufacturing overhead		5.00	($410,000 total)
Variable selling expenses		2.70
Fixed selling expenses		5.50	($451,000 total)
Total cost per unit	$	34.40

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 110,700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% above the present 82,000 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: