Ivanhoe is the creator of Y-Go, a technology that weaves silver into fabrics to kill bacteria and odour on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,000,000 Y- Go undergarments each year. The per-unit and total costs for the undergarment are as follows: Per Undergarment Total $1.60 $1,600,000 Direct materials 0.50 500.000 Direct labour 1.25 1,250,000 Variable manufacturing overhead 1.20 1,200.000 Fixed manufacturing overhead 0.25 250,000 Variable selling expenses $4.80 $4,800,000 Total The Canadian Armed Forces (CAF) has approached Ivanhoe and expressed an interest in purchasing 227,500 Y-Go undergarments for soldiers stationed in extremely warm climates. The CAF would pay the unit cost for direct materials, direct labour, and variable manufacturing overhead costs. In addition, the CAF has agreed to pay an additional $1 per undergarment to cover all other costs and The Canadian Armed Forces (CAF) has approached Ivanhoe and expressed an interest in purchasing 227,500 Y-Go undergarments for soldiers stationed in extremely warm climates. The CAF would pay the unit cost for direct materials, direct labour, and variable manufacturing overhead costs. In addition, the CAF has agreed to pay an additional $1 per undergarment to cover all other costs and provide a profit. Presently, Ivanhoe is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Ivanhoe accepts the CAF's offer, it will not incur any variable selling expenses for this order. (a) Using incremental analysis, determine whether Ivanhoe should accept the CAF's offer. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) $ Incremental revenue Incremental cost: Variable cost $ Incremental income Question 3 of 5 Using incremental analysis, determine whether Ivanhoe should accept the CAF's offer. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 5,275.) Incremental revenue $ Incremental cost: Variable cost Incremental income $ Ivanhoe should the Canadian forces' offer