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 $42 per unit. The company's unit costs at this level of activity are given below. Direct materials 6.500 Direct labor 10.00 Variable manufacturing overhead 2.80 Fixed manufacturing overhead 7.00 ($574,000 total) Variable selling expenses 4.70 3.50 ($287,000 total) Fixed selling expenses Total cost per unit 34.500 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 110,700 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% 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.) Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense 0.00 Incremental net operating income