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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 $42

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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 $42 per unit. The company's unit costs at this level of activity are given below: A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 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 $150,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.)

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