Ovation Company has a single product called a Bit. The company normally produces and sells 24,000 Bits each year at a selling price of $30 per unit. The company's unit costs at this level of activity are given below: A number of questions relating to the production and sale of Bits follow. Each question is independent. Requirec: 1. Assume that Ovation Company has sufficient capacity to produce 36,000 Bits each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the current 24,000 units each year if it were willing to increase the fixed selling expenses by $54,000. a. Calculate the incremental net operating income