CALCULATOR FULL SCREEN PRINTERS RACE Exercise 20-04 Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on dothing while managing heat. Yohas become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,065,000 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. Total Direct materials Direct labor Variable manufacturing overhead Fioved manufacturing overhead Variable seling expenses Totals Per Undergarment $2.04 0.42 1.00 1.53 0.32 $5.31 $2,172,600 447,300 1,065,000 1,629,450 340.800 $5,655,150 The U.S. Army has approached Idean ber and expressed an interest in purchas ng 249,000 Y.Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for deed materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.05 per undergarment to cover at other costs and provide a profit. Presently Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y Go. of Klean Fiber accepts the Army's offer it will not incur any variable selling expenses Telated to this order CALCULATOA FULL SCREEN Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts resing either a negative sign preceding the number sy. -5 or parentheses (45) Net Income Reject Accept Increase Order Order (Decrease) Revenues Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income Should Klean Fiber accept the Army's offer? Klean Fiber should the Army's offer Click if you would like to Show Work for this question: een Show Work