Ch20 Homework-graded Question 3 of 9 < > Your answer is partially correct 1.26/4 E 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 1.065.000 V-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 Direct materials $1.92 $2,044,800 Direct labor 043 457,950 Variable manufacturing overhead 1.02 1,086,300 Fixed manufacturing overhead 1.53 1,629,450 Variable selling expenses 0.37 394050 Totals $5.27 $5.612.550 The US Army has approached Klean 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, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $109 per undergarment to cover all other costs and provide a prot Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go If Klean Fiber accuts the Army's offer, it will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number eg-45 parentheses eg (453) Reject Accept Net Income Increase Question 3 of 9 1.26/4 1 The US Army has approached Klean Fiber and expressed an interest in purchasing 249,000 V-Go undergarments for solders in extremely warm climates. The Army would pay the unit cost for direct materiah, direct labor and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $109 per undergarment to cover all other costs and provide a prof Presently Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Klean Fiber. Enter negative amounts using either a negative sign preceding the number 45 parentheses eg (451) Reject Order Accept Order Net Income increase (Decrease) 1008254 1000256 Revenues Variable costs Direct materials 4067201 720 Direct labor Variable overhead Total variable costs 843648 244400 244600 Net income