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Comtudo is the creator of Y-Go, a technology that weaves silver into fabric to kill bacteria and odour on clothing while managing beat Y-Go has
Comtudo is the creator of Y-Go, a technology that weaves silver into fabric to kill bacteria and odour on clothing while managing beat Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produc 1.000.000 Y Go undergarments each year. The per unit and total costs for the undergarment are as follows: Per Undergarment $1.95 Total $1,950,000 Diniet labour 0.75 0.85 1.70 750,000 850,000 1,700,000 Direct materials Variable manufacturing overhead. Fixed manufacturing overhead Variable selling apaLOSES 0.30 55.55 Toral $5,550,000 The Canadian Armed Forces (CAF) has approached Coronado and expressed an interest in purchasing 224,500 Y Co undergarments for soldiers stationed in extremely warm climates. The CAF would pay the unit cost for direct materials direct labour and vadable manufacturing overhead costs. In addition, the CAF has agreed to pay an additional $2 per undergarment to cover all other costs and provide a profit Presently Coronado is operating at 75% capacity and does not have any other potential buyers for V-Go, if Coronado accepts the CAF's offer it will not incur any variable selling expenses for this order. Using incremental analysis, determine whether Coronado should accept the CAF volle (Round per unit colculations to 2 decimal places, eg 15.25 and final answers to O decimal places, eg. 5.275) Incremental revenue Variable cost Incremental income Coronado should the Canadian forces offer
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