Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $42 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses $ 6.50 12.00 2.10 4.00 ($332,000 total) 3.70 4.50 ($373,500 total) Total cost per unit $ 32.80 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 116,200 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 40% above the present 83,000 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.) O Answer is complete and correct. 33,200 $ 17.70 . Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense 587,640.00 120,000.00 . Incremental net operating income 467,640.00 1-b. Would the increased fixed selling expenses be justified? Do Yes O No