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Andretti Company has a single product called a Dak. The company nomally produces and sells 87,000 Daks each year at a selling price of$50 per
Andretti Company has a single product called a Dak. The company nomally produces and sells 87,000 Daks each year at a selling price of$50 per unit. The companys unit costs at this level of activity are given below: Direct materials 7,50 9.00 Direct labor Variable manufacturing overhead 2.90 9.00 ($783,000 total) Hxed manutacturing overhead Variable sclling cxpcnscs 3.70 Fixed selling expenses 5.50 ($478,500 total) S 3760 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 113,100 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 87.000 units each year it were willing to increase the fixed selling expenses by S120,000. Calculate the incremental net operating income. (Round your answers to the nearest whole number. Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense Incremental net operating incorrie
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