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Crane Fiber Company is the creator of Y - Go , a technology that weaves silver into its fabrics to kill bacteria and odor on

Crane 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 1,063,000 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
Per Undergarmnet Total
Direct materials $1.99 $2,115,370
Direct labor 0.53563,390
Variable manufacturing overhead 1.001,063,000
Fixed manufacturing overhead 1.571,668,910
Variable selling expenses 0.35372,050
Totals $5.44 $5,782,720Prepare 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?
rane Fiber should
the Army's offer.
The U.S. Army has approached Crane 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 $1.04 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).)
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