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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver inte its fabrics to kill bacteria and odor on doing while managing

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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver inte its fabrics to kill bacteria and odor on doing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,038,000 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 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Per Undergarment $1.96 0.52 1.07 $2,132,480 565,760 1,164,160 1,599,360 326,400 $5,788, 160 0.30 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 $0.96 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. Ir Klean Fiber accepts the Army's after it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Kean Fiber. (Enter negative amount wing other a negative sin preceding the number -45 or parenthesese.. (45).) Net Income Reject Accept Order Variable costs: Direct materials The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,400 Y Go undergarments for soldiers in extremely warm dimates. The Army w a y the cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay and is 06 per undergarment to cover all other costs and provide a proft. Presently bean Fiber is operating at it and does not have any other potential buyers for y-Go I n Fibercepts the Army's offer will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Klean Fiber (inter negative amounts using either a negative sin preceding the number a 45 or parentheses (45).) Reject Order Order Net Income Increase Revenues Variable costs Direct materials Director Variable overhead Net income Should We Fiber accept the Army's offer en ber should the Army's offer

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