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please answer Cullumber Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing
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Cullumber 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 1,055,000 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. The U.S. Army has approached Cullumber Fiber and expressed an interest in purchasing 250.500Y-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 $1.06 per undergarment to cover all other costs and provide a profit. Presently, Cullumber Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Cullumber Fiber accepts the Army's offer, it will not incur amy variable selling expenses related to this order. Prepare an incremental analysis for the Cullumber Fiber. (Enter negative amounts using either a negative sign preceding the Prepare an incremental analysis for the Cullumber Fiber. (Enter negative amounts using either a negative sign preceding the number e..-45 or parentheses e.3. (45).) Should Cullumber Fiber accept the Army's offer Step by Step Solution
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