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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 YGo a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. YGo has become very popular in undergarments for sports activities. Operating at capacity, the company can produce YGo 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 $ $
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling expenses
Totals $ $Prepare an incremental analysis for the Crane Fiber. Enter negative amounts using either a negative sign preceding
the number eg or parentheses eg
Should Crane Fiber accept the Army's offer?
rane Fiber should
the Army's offer.
The US Army has approached Crane Fiber and expressed an interest in purchasing YGo 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 $ per
undergarment to cover all other costs and provide a profit. Presently, Crane Fiber is operating at capacity
and does not have any other potential buyers for YGo 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 eg or parentheses eg
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