Ovation Company has a single product called a Bt. The company normaly produces and sells 28.800 Bits each your at a selling price of $32 per unit. The company's unit costs at this level of activity are given below Direct materials Direct labour Variable manufacturing overhead Tited nanunturing overhead Variable selling expenses Fixed selling expenses Total cost per unit 512.30 3.00 1.80 3.10 $15.041 total) 2.10 3.00 (16,400 total) $25.50 A number of questions relating to the production and sale of Birts follow. Each question is independent Required 1. Assume that Ovation Company has sufficient capacity to produce 43,200 Bits each year without any increase in fred manufacturing overhead costs. The company could increase its sales by 25% above the current 28.800 units each year if it were willing to increase the fixed selling expenses by $60,000. a. Calculate the incremental net operating income. Inmental operating income b. Would the increased fixed selling expenses be justified? Yes O No 2. Assume again that Ovation Company has sufficient capacity to produce 43200 Bits each year A customer in a foreign market wants to purchase 7,200 Bits. Import duties on the Bits would be $170 per unit, and costs for permits and licences would be 53.240 Both import duties and permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are $2.70 per unit shipping cost. Compute the per unit break-even price on this order (Do not round your intermediate calculations, Round your answer to 2 decimal places.) Break even priceperunt 3. The company has 1000 Bits on hand that have some irregularities and are therefore considered to be seconds. Due to the irregularities, it will be impossible to sell these units of the normal price through regular distribution channels. What unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimal places.) Relevant un coul 4. Due to a strike in its supplier's plant, Ovation Company is unable to purchase more material for the production of fats. The strikes expected to last for two months. Ovation Company has enough material on hand to operate at 30% of normal levels for the two month period. As an alternative, Ovation could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing online the remained that the team