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Stuck on number 4!! Andretti Company has a single product called a Dak. The company produces and Daks each year at a selling price of

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Andretti Company has a single product called a Dak. The company produces and Daks each year at a selling price of $48 per unit. The company's unit costs at this level of activity are given below. Direct materials 8.50 Direct labor 10.00 Variable manufacturing overhead 2.10 Fixed manufacturing overhead Variable selling expenses 2.70 Fixed selling expenses 4.50 ($396,000 total) Total cost per unit 34,80 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 each year without any increase in fixed manufacturing overhead costs The company could increase its sales by 30% above the 88,000 each year if it were willing to increase the selling expenses by $140,000. Calculate the incremental net operating income (Round all dollar amounts to 2 decimal places Increased sales in units 26,400 Contribution margin per unit 24.70 Incremental contribution margin 652,080,00 Less added fixed selling expense 140,000.00 Incremental net operating income 512,080.00

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