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PLEASE ANSWER FULLY - PLEASE DO NOT WRITE IT OUT (USE EXCEL OR A FORMAT THAT IS SIMILAR TO WHAT I'VE SUBMITTED), THANK YOU! Andretti
PLEASE ANSWER FULLY - PLEASE DO NOT WRITE IT OUT (USE EXCEL OR A FORMAT THAT IS SIMILAR TO WHAT I'VE SUBMITTED), THANK YOU!
Andretti Company has a single product called a Dak. The company normally produces and sells 84,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below: $ 7.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed sellina expenses 11.00 3.60 10.00 ($840,000 total) 4.70 5.50 ($462,000 total) Total cost per unit $ 42.30 A number 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 117,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 40% above the present 84,000 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 0.00Step by Step Solution
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