Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $42 per unit. The companys unit costs at this level of activity are given below:

Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $42 per unit. The company's unit costs at this level of activity are given below: Direct materials 7.50 Direct labor 11.00 Variable manufacturing overhead 2.70 Fixed manufacturing overhead 3.00 ($264,000 total) Variable selling expenses 1.70 6.50 ($572,000 total) Fixed selling expenses Total cost per unit 32.40 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 114,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 88,000 units each year if it were willing to increase the fixed selling expenses by $110,000 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 0.00 ncremental net operating income