klean fiber company is the creator of y-go $2.04

PRINTER VERSION BACK NEXT Exercise 21-4 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 1,060,000 Y Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at Pull capacity are as follows. Per Undergarment $2.04 0.53 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Total Total $2,162,400 561.800 1.049.400 1,494,600 328,600 $5.996.800 The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,000 Y.Goundergarments for soldiers in extremely warm cimates. The Arnwy 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 $0.99 per undergarment to cover all other costs and provide a profit. Presently, Klean Piber is operating at 70% capacity and does not have any other potential buyers for Y.G. Idean be accept the Army's offer, not incur any variable selling expenses related to this onder Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts wsing either a negative sin preceding the number ...45 or parentheses (45).) Net Income Reject Order Accept Order Revenues Variable costs Direct materials Direct labor Variable overhead Total variable costs Net Income Should Klean Fiber accept the Army's offer? Klean Fiber should the Army's offer