Richter Company has a single product called a Wim. The company normally produces and sells 75,000 Wims each year at a selling price of $40 per unit. The company's unit costs at this level of activity are given below: Direct materials 9.00 Direct labor 11.00 Variable manufacturing overhead 3.80 Fixed manufacturing overhead 4.00 Variable selling expenses 5.20 5.70 Fixed selling expenses $38.70 Total cost per unit A number of questions relating to the production and sale of Wims are given below. Each question is independent. Required: 1. Assume that Richter Company has sufficient capacity to produce 97,500 Wims each year without any increase in fixed manufacturing overhead costs. The company could increase sales by 30% above the present 75,000 units each year if it were willing to increase the fixed selling expenses by $140,000 a. Calculate the incremental net operating income. (Negative amount should be indicated by a minus sign.) Incremental net operating income 107,500