Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 activities. Operating at capacity, the company can produce 1,087,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the e follows. Per Undergarment Total a capacity a Direct materials $1.96 $2,130,520 Direct labor 0.41 445,670 Variable manufacturing overhead 0.99 1,076,130 Fixed manufacturing overhead 1.50 1,717,460 Variable selling expenses 0.30 Totals $5.24 326,100 $5,695,880 The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,700 Y-Go undergarments for soldiers in extremely warm cimates, The Army would pay the ut cost for det labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.09 per undergarment to cover all other costs and provide a profit Presently, lean Finer 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 seting expenses related to this order. Prepare an incremental analysis for the Kiean Fiber. (Enter negative amounts using either a negative sign preceding the number ag-45 or parentheses eg (45))

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applying International Financial Reporting Standards

Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise

3rd edition

730302121, 978-0730302124

More Books

Students also viewed these Accounting questions

Question

Extend to a basis for M 22 . 1 1 1 1

Answered: 1 week ago

Question

Please help me evaluate this integral. 8 2 2 v - v

Answered: 1 week ago

Question

Why is feedback necessary in a control system?

Answered: 1 week ago