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: $9.00 11.00 3.80 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 5.20 5.70 Total cost per unit $38.70 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