Ovation Company to a single product called a bit. The company normally produces and tells 64,800 nits each year at selling price of $47 per unit. The company's unit costs at this level of activity are given below Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $10.50 7.50 3.60 4.30 (5311,040 total) 2.70 (5174,960 total) $35.70 A number of questions relating to the production and sale of Bits follow. Each question is independent Required 1. Assume that Ovation Company has sufficient capacity to produce 97200 Bits each year without any increase in fixed manufacturing overhead costs. The company could increase its soles by 25% above the current 64 800 uruts each year if it were Willing to increase the fixed selling expenses by $105,000 a. Calculate the incremental net operating income Incremental operating income b. Would the increased fixed selling expenses be justified? Yes NO 2. Assume again that Ovation Company has sufficient capacity to produce 97.200 Bits each year. A customer in a foreign market wants to purchase 16.200 Bits Import duties on the Bits would be $170 per unit, and costs for permits and licences would be $2290 Both import duties and permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are $3.00 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.) reak 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 at 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)