Prepare an incrcmen tori nnniysisfor n specialorder decision. E119 (LO 2) Hardy Fibre is the creator of YGo, a technology that weaves silver into fabrics to kill bacteria and odour on clothing while managing heat. YGo has become very popular in undergarments for sports activities. Operating at capacity, the company can produce one million YGo undergarments each year. The per-unit and total costs for the undergarment are as follows: Per Undergarment Total Direct materials 32.00 $2,000,000 Direct labour o.5o 500,00o Variable manufacturing overhead 1.00 1,000,000 Fixed manufacturing overhead 1.25 1,25 0,000 Variable selling expenses 0.25 25 0,000 Total ESE 35,000,000 The Canadian Armed Forces [CAP] has approached Hardy Fibre and expressed an interest in purchasing 200,000 Y-Go undergarments for soldiers stationed in extremely warm climates. The CAP would pay the unit cost for direct materials, direct labour, and variable manufacturing overhead costs. In addition, the CAP has agreed to pay an additional 31 per undergarment to cover all other costs and provide a prot. Presently, Hardy Fibre is operating at 730% capacity and does not have any other potential buyers for YGo. If Hardy Fibre accepts the CtF's offer, it will not incur any variable selling expenses for this order. Instructions a. Using incremental analysis, determine whether Hardy Fibre should accept the CAPS offer. b. Assume Hardy Fibre can now sell one million undergarments in the open market at 38 per unit. Using incremental analysis, determine 1whether Hardy Fibre should accept the CAP s offer for the 200,000 garments