Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria....

Send to Gradebook Prev Next > bmitted to Gradebook, Wed Feb 26, 2020, 6:12 22 PM( A -05:00 rcaNew York Question 8 View Policies Current Attempt in Progress 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 1.090.000 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. Per Total Undergarment Direct materials Direct labor Undergarment 0.59 0. 59 1. 07 $2,114,600 6 43.100 .166,300 1 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 1. 46 1 ,591,400 0. 32 55.38 3 48.800 $5.864,200 Totals The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249400 Y Go undergarments for soldes extremely warm climates. The Army would pay the unit cost for directorials, direct labor and variable manufacturing overhead costs. In addit i nhos agreed to pay an additional $1,01 per underwent to cover all other costs and provide a pront. Presenti Neanfiburi capacity and does not have any other potential buyers too. If Klean Fiber accepts the Anys oferit within dahi l expenses related to this order od SSE4200 5.864 The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,400 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 $1.01 per undergarment to cover all other costs and pro 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 negative amounts using either a negative sin preceding the number 45 or parentheses eg. (451) Accept Reject Order Net Income Increase (Decrease) Order Revenues Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income Should Kean Fiber accept the Army's offer