(b) ? Should Penn Company accept the special order Why or why not? E7-3B Weaver Company is the creator of B-Go, a technology that weaves silver into its Use incremental analysis for fabrics to kill bacteria and odor on clothing while managing heat. B-Go has become very special order poplans an undergament ?o sports activities. Operating at capacity, the coinpany can (SO 3) produce 1,000,000 undergarments of B-Go 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 $2.00 0.50 1.00 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses $2,000,000 500,000 1,000,000 1,250,000 250,000 $5,000,000 0.25 Totals $5.00 The U.S. Army has approached Weaver and expressed an interest in purchasing Go undergarments for personnel 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 $1.00 per undergarment to cover all other costs and provide a profit. Presently, Weaver is operating at 70 percent capacity and does not have any other potential buyers for B-Go. If Weaver accepts the Army's offer, it will not incur any variable selling expenses related to this order eire