Question: Please help! Cannot figure out what im doing wrong. Andretti Company has a single product called a Dak. The company normally produces and sells 86,000

Please help! Cannot figure out what im doing wrong.

Please help! Cannot figure out what im doing wrong. Andretti Company hasa single product called a Dak. The company normally produces and sells86,000 Daks each year at a selling price of $46 per unit.

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 $46 per unit. The company's unit costs at this level of activity are given below: $ 7.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 10.00 2.90 8.00 (S688,000 total) 4.70 4.50 ($387,000 total) Total cost per unit 37.60 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 116,100 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 35% above the present 86,000 units each year if it were willing to increase the fixed selling expenses by $140,000. Calculate the incremental net operating income. (Round all dollar amounts to 2 decimal places. 30,100 20.90 Increased sales in units ontribution margin per unit Incremental contribution margin Less added fixed selling expense Incremental net operating income $ 629,090.00 140,000.00 $ 489,090.00

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