Andretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling price of $62 per unit. The companys unit costs at this level of activity are given below: Direct materials $ 6.50 Direct labor 9.00 Variable manufacturing overhead 2.80 Fixed manufacturing overhead 8.00 ($640,000 total) Variable selling expenses 2.70 Fixed selling expenses 4.00 ($320,000 total) Total cost per unit $ 33.00 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 96,000 Daks each year without any increase in fixed manufacturing overhead costs. The company