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Klean Fiber Company is the creator of Y.CQ, a technology that weavos stlver into its fabrics to kill bacteriaand odor on clothing whille managing heat.

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Klean Fiber Company is the creator of Y.CQ, a technology that weavos stlver into its fabrics to kill bacteriaand odor on clothing whille managing heat. Y.Go has become very populat in undergarments foe sports activities. Operating at capacity the company can produce 1,065,000 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 follown. The US. Army has approached Klean Fiber and expressed an interest in purchasing 249,000 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 \$1.05 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 Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Klean Fiber. (Enter negotive amounts using either a negative sign preceding the number e.8. 45 or parentheses e.g. (45).) Should Kiean Fiber accept the Arnw's olfer? Kiean Fiber vhould the Armw's alfer

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