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Sheridan Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1.010,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total $1.929,100 $1.91 0.41 414,100 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 0.96 969,600 1.48 1.494.800 0.31 313.100 Totals $5.07 $5,120.700 The U.S. Army has approached Sheridan and expressed an interest in purchasing 250,000 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead Totals $5.07 $5,120,700 The U.S. Army has approached Sheridan and expressed an interest in purchasing 250,000 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.03 per undergarment to cover all other costs and provide a profit. Presently, Sheridan is operating at 70% capacity and does not have any other potential buyers for Y Go. If Sheridan accepts the Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Sheridan. (Enter negative amounts using either a negative sign preceding the number eg 45 or parentheses 6.3. (451) Reject Order Accept Order Net Income Increase (Decrease) Revenues S $ s Variable costs: Direct materials Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ Variable costs: Direct materials LE Direct labor Variable overhead Total variable costs Net income $ S $ Should Sheridan accept the Army's offer? Sheridan should V the Army's offer. N accept reject Sa fontaner