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Current Attempt in Progress Wildhorse Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on
Current Attempt in Progress Wildhorse 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 1,002,000 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. Direct materials Per Undergarment $2.03 Total $2,034,060 Direct labor i 0.45 450,900 Variable manufacturing overhead 1.10 1.102.200 Fixed manufacturing overhead 1.43 1,432,860 Variable selling expenses 0.36 360,720 Totals 1 $5.37 $5,380,740 22002 NGUY C The U.S. Army has approached Wildhorse and expressed an interest in purchasing 250,200 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 13 Show A 0020002 NGY Variable manufacturing overhead 1.10 1,102,200 Fixed manufacturing overhead 143 1,432,860 Variable selling expenses Totals 0.36 360,720 $5.37 $5,380,740 The U.S. Army has approached Wildhorse and expressed an interest in purchasing 250,200 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 $1,09 per undergarment to cover all other costs and provide a profit. Presently, Wildhorse is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Wildhorse accepts the Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Wildhorse. (Enter negative amounts using either a negative sign preceding the number eg-45 or parentheses eg. (45)) Revenues 13 Reject Order Accept Order SUCBOOK Net Income Increase (Decrease) Show t X 1601: 205, Ngy i Direct labor Variable overhead Total variable costs Net income Should Wildhorse accept the Army's offer? Wildhorse should Save for Later 13 the Army's offer.. MacBook Air Attempts: 0 of 1 used t
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