Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $46 per unit. The companys unit costs at this level of activity are given below:

Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses S 9.50 11.00 2.40 8.00 (S492,000 total) 2.70 5.50 (S451,000 total) Total cost per unit S 37.10 A number of questions relating to the production and sale of Daks follow. Each question is Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 108,800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 82,000 units each year if it were willing to increase the fixed selling expenses by $110,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places.) ncreased sales in uni ontribution margin per uni cremental contribution margi Less added fixed selling expense Incremental net operating incomeS 0.00 1-b. Would the increased fixed selling expenses be justified? O Yes O No 2. Assume again that Andretti Company has sufficient capacity to produce 106,800 Daks each year. A customer in a foreign market wants to purchase 24,800 Daks. Import duties on the Daks would be S2.70 per unit, and costs for permits and licenses would be S14,780. The only selling costs that would be associated with the order would be S2.30 per unit shipping cost. Compute the per unit break-even price on this order. (Round your answers to 2 decimal places.) Variable manufacturing cost per unit Import duties per unit Permits and licenses Shipping cost per unit Break-even price per unit