Question
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
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))
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