Flounder 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 1,083,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacty are as follows. Total Per Undergarment $2.05 0.46 1.03 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Totals $2,220,150 498,180 1,115,490 1,602,840 357,390 1.4B 0.33 $5.35 $5,794,050 The U.S. Army has approached Flounder and expressed an interest in purchasing 249 500 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for cirect materials, cirect 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, Flounder is operating at 70% capacity and does not have any other potential buyers for Y-Go If Flounder accepts the Army's offer, it Wil not incur any variable selling expenses related to this order Prepare an incremental analysis for the Flounder. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Variable costs: Direct materials Direct labor variable overhead Total variable costs Net income Should Flounder accept the Army's offer? Flounder should the Army's offer