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Ivanhoe 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

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Ivanhoe 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 1,053,000 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. The US. Army has approached Ivanhoe Fiber and expressed an interest in purchasing 249,700 Y. Go undergarments for soldiers in. extremely warm climates. The Army would pay the unit cost for direct materiak, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pwy an additional $1.01 per undergarment to cover all other costs and provide a profit. Presently. Ivanhoe Fiber is operating at 70% capacity and does not have any other potentia buyers for Y. Go. Hf Ivanhoe Fiber accepts the Army's offer, it will not incur ariy variable selling expenses related to this order. Prepare an incremental analysis for the Ivanhoe Fiber. (Enter negatwe amounts uding either a negative sign preceding the number es . 45 or porentheses eg(45)] Should Ivanhoe Fiber accept the Armys offer? Ivanhou Fiber should the Army's offer

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