Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please explain this question properly Sheffield is the creator of Y-Go, a technology that weaves silver into fabrics to kill bacteria and odour on clothing
please explain this question properly
Sheffield is the creator of Y-Go, a technology that weaves silver into fabrics to kill bacteria and odour on clothing while managing heat Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,000,000 Y- Go undergarments each year. The per-unit and total costs for the undergarment are as follows: Total Per Undergarment $1.80 Direct materials $1.800,000 550.000 Direct labour 0.55 0.80 800.000 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 1.05 1.050.000 0.25 250,000 Total $4.45 $4,450,000 The Canadian Armed Forces (CAF) has approached Shefheld and expressed an interest in purchasing 181.500 Y-Go undergarments for soldiers stationed in extremely warm cimates. The CAF would pay the unit cost for direct materials, direct labour and variable manufacturing overhead costs. In addition, the CAF has agreed to pay an additional $1 per undergarment to cover all other costs and provide a profit. Presently, Sheffield is operating at 75% capacity and does not have any other potential buyers for Y.Golf Sheffield accept the CAF's offer.it will not incur by variable selling expenses for this order Using incremental analysis, determine whether Sheffield should accept the CAF's offer. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) Incremental revenue Incremental cost: Variable cost Incremental income $ Shefheld should the Canadian forces offer Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started