Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 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 8.50 Direct labor 10.00 Variable manufacturing overhead 2.80 Fixed manufacturing overhead 10.00 ($850,000 total) Variable selling expenses 2.70 Fixed selling expenses 3.50 ($297,500 total) 37.50 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 106,250 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 85,000 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