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Question 2 (28 marks) CWB Inc. produces stuffed bunnies. The company normally produces and sells 78,000 stuffed bunnies each year at a selling price of

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Question 2 (28 marks) CWB Inc. produces stuffed bunnies. The company normally produces and sells 78,000 stuffed bunnies each year at a selling price of $50 per unit. The company's unit costs at this level of activity are given below: Each question below is independent. Required (Show your calculations): 1. (8 marks) Assume that CWB Inc. has sufficient capacity to produce 93,600 stuffed bunnies each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 20% above the present 78,000 units each year if it were willing to increase the fixed selling expenses by $139,000. Compute the incremental net operating income

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