Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $59 per unit. The company's unit costs at this level of activity follow: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses $19.00 13.50 11.30 5.00 $435,000 total 3.90 3.50 $304,500 total Total cost per unit $56.20 A number of questions relating to the production and sale of Daks follow. Consider each question separately. equired: 1. Assume that Andretti Company has sufficient capacity to produce 150,000 Daks every year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 87,000 units each year if it were willing to increase the fixed selling expenses by $30,625 a. Calculate the incremental net operating income. (Do not round intermediate calculations.) Incremental net operating income b. Would the increased fixed expenses be justified? O Yes 0 2. Assume again that Andretti Company has sufficient capacity to produce 150,000 Daks every year. A customer in a foreign market wants to purchase 29,000 Daks. Import duties on the Daks would be $3.50 per unit, and costs for permits and licences would be $13,050. The only selling costs that would be associated with the order would be $5.90 per unit shipping cost. Compute the per-unit break-even price on this order. (Do not round intermediate calculations. Round your answer to 2 decimal places.) reak-even price per ni 3. The company has 1,900 Daks on hand that have some irregularities and are therefore considered to be seconds. Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. Wht unit cost figure is relevant for setting a minimum selling price? Round your answer to 2 decimal places.) Relevant unit cost