capacity, the company can produce $1,090,000Y-$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.

The U$.$S$.$ Army has approached Crane Fiber and expressed an interest in purchasing $249,400$ 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\mathrm{.}01$ per undergarment to cover

all other costs and provide a profit. Presently, Crane Fiber is operating at $70\%$ capacity and does not have any other

potential buyers for $Y-$Go$.$ If Crane Fiber accepts the Army's offer, it will not incur any variable selling expenses related

to this order.

Prepare an incremental analysis for the Crane Fiber. $($Enter negative amounts using either a negative sign

preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Should Crane Fiber accept the Army's offer?

Crane Fiber should

the Army's offer.