Problem 10-18A Relevant Cost Analysis in a Variety of Situations [L010-2, LO10-3, LO10-4] 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 $50 per unit. The company's unit costs at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses $ 9.50 11.00 3.50 7.00 (5588,000 total) 4.70 3.50 ($294,000 total) Total cost per unit $39.20 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 105,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 84,000 units each year if it were willing to increase the fixed selling expenses by $120,000. 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 0.00