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CALLULATUM FULL 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
CALLULATUM FULL 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 clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,060,000 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 Undergarment $2.04 Direct materials Direct labor Variable manufacturing overhead Foxed ma turing overhead Variable expenses 0.53 0.99 Total $2,162,400 561,800 1,049.400 1.494.600 323.600 $5,596,300 1.41 The US Army has approached Kean Fiber and expressed an interest in purchasing 249,000 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, director and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $0.99 per undergarment to cover all other costs and provide a pro Prevent. Wenberispering 70% and does not have any other potential buyers for Y. , Kean Fiber accept the Army offer, it will not incur any variable selling exper ted to the order masa...for sh a har Entar masative amounts using either a negative si preceding the number 45 or parentheses (45) W urder Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number ..-45 or parentheses .. (45)) Net Income Reject Order Accept Order (Decrease) Reverwues Variable costs Direct materia Direct labor Variable overhead Total variable costs Should Klean Fiber accept the Army's offer? Click of you would like to show Work for this questions on Show Work
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