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E7.4 (LO 2). AN Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor

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E7.4 (LO 2). AN 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 1,000,000Y-Go undergarments a year. The per unit and the total cosis for an individual garment when the company operates at full capacity are as follows. Use incremental analysis for special order. The U.S. Ammy has approached Klean Fiber and expressed an interest in purchasing 250.000 y.Go undergarments for soldiers in extremely warm cilmates. 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 adaitional \$1 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y.Go. If Klean Fiber accepts the Armys offer, it will not incur any variabie selling expenses reiated to this order. Instructions Using incremental analysis, determine whether Klean Fiber should accept the Army's offer

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