Answer question correctly

Andretti Company has a single product called a Dak. The company normally produces and sells 85.000 each year at a selling price of $44 per unit. The companys unit costs at this level of activity are given below: 8.50 Direct materials 12.00 Direct labor 2.90 Variable manufacturing overhead Fixed manufacturing overhead llllllllllllllll 5.00 ($425.000 toal) 4.70 Variable selling expenses Fixed selling expenses 6.50 ($552,500 total) 39.60 Total cost per unit Anumber 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 106,250 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 85,000 units each year if it were willing to increase the fixed selling expenses by $140,000. 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 S 0.00