Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $48 per unit. The company's unit costs at this level of activity are given below: Direct materials 8.50 Direct labor 10.00 Variable manufacturing overhead 3.00 10.00 ($860,000 total Fixed manufacturing overhead Variable selling expenses 2.70 5.50 ($473,000 total) Fixed selling expenses Total cost per unit 39.70 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 111,800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 86,000 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