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 $44 per unit. The company's unit costs at this level of activity are given below S 7.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 9.00 2.30 4.00 ($348,000 total) 2.70 3 50 (s304 500 total) Total cost per unit $ 2900 A number of questions relating to the production and sale of Daks tollow Each question is independent Required: 1.a Assume that Andretti Company has sufficient capacity to produce 104,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 20% above the present 87,000 units each year if it were willing to increase the fixed seling expenses by $140,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) Answer is complete and correct. 17.400 22.50 Increased sales in units Contribution margin per unt Incremental contribution margin Less added foxed selling expense 140,000.00 Incremental net operating income 251500 00 391 500 00 1-b Would the increased fixed selling expenses be justified? Yes O No Type here to search DOLt