Andretti Company has a single product called a Dak. The company normally produces and sells 84,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses $ 7.50 9.00 2.00 4.00 ($336,000 total) 3.70 3.50 ($294,000 total) Total cost per unit $29.70 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 117.600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 40% above the present 84,000 units each year if it were willing to increase the fixed selling expenses by $120,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) ncreased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense Incremental net operating income 1-b. Would the increased fixed selling expenses be justified? O Yes O No O Type here to search 0