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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into popular in undergarments for sports activities. Operating at capacity, the company

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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into popular in undergarments for sports activities. Operating at capacity, the company Individual w eet when the company operates a full capacity are as follows fabrics to kill bacteria and odor on dothing while managing heat. Y-Go has become very produce 1,000,000 Y-Go undergarments a year. The per unit and the total costs for a Total Undergarment $2.03 Direct materials Direct labor Variable manufacturing overhead Fed manufacturing overhead Variable selling expenses Totals $2,034,060 450,900 1,102,200 1.432.560 300.720 $5.380,740 1.43 The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 250,200 Y-Go undergarments for soldiers in extremely warm imates. The Army would pay the unit cost for direct materials, direct labor, and variabile manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.00 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 Kean ber accepts the Army's offer, It will not incur any variable selling expenses related to this order Prepare an incremental analysis for the dean Fiber Enternative amounts using either a gative so pred the bre 5 parentheses (as).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Variable costs Direct materials

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