Jawal Co. has a single product called a Phono. The company normally produces and sells 80000 Phonos each year at a selling price of $50 per unit. The company's units production, selling price, costs at this level of activity are given below: Description Unit$ Production Level Phono Units Selling Price Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit Value 80000 50.00 5.60 11.00 3.40 7.00 4.50 4.70 36.20 1) Assume that Jawal Co. has sufficient capacity to produce 105,300 Phonos each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 55% above the present 80000 units each Jyear if it were willing to increase the fixed selling expenses by $180,000. Calculate the incremental net operating Amount $ Explanation Description Selling price per unit variable expenses per unit Contribution margin per unit 0.00 Amount $ Description Sales in Unit Percentage Increased sales in units Contribution margin per unit Incremental contribution margin Less added fixed selling expense Incremental net operating income