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 $ 6.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 8.00 2.40 3.00 ($264,000 total) 3.70 3.50 ($308,000 total) Total cost per unit $ 27.10 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 $120,000. 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 Incremental net operating income