Problem 12-18 Relevant Cost Analysis in a Variety of Situations [L012-2, L012-3, L012-4] Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below: Direct materials 6.500 Direct labor 11.00 Variable manufacturing overhead 1.90 7.00 ($602,000 total) Fixed manufacturing overhead Variable selling expenses 2.70 4.50 ($387,000 total) Fixed selling expenses Total cost per unit 33.600 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 107,500 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 86,000 units each year if it were wi ncrease the fixed selling expenses by ng to $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 0.00 incremental net operating income 1-b. Would the increased fixed selling expenses be justified? Yes No 2. Assume again that Andretti Company has sufficient capacity to produce 107,500 Daks each year. A customer in a foreign market wants to purchase 21,500 Daks. Import duties on the Daks would be $1.70 per unit, and costs for permits and licenses would be $17,200. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. Compute the per unit break-even price on this order. (Round your answers to 2 decimal places.) Variable manufacturing cost per unit Import duties per unit Permits and licenses Shipping cost per unit 5 000 Break-even price per unit