PRINTER VERSION HACK Hardy Fibre is the creator of Y-Go, a technology that weaves silver inte fabrics to kill bacteria and odour on dething 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: NEXT Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Total Per Undergarment $1.50 0.50 0.75 1.00 0.25 $4.00 Total $1,500,000 500,000 750,000 1,000,000 250,000 $4,000,000 The Canadian Armed Forces (CAF) has approached Hardy Fibre and expressed an interest in purchasing 180,000 Y-Go undergarments for soldiers stationed in extremely warm climates. The car 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, Hardy Fibre is operating at 65% capacity and does not have any other potential buyers for Y-Go. If Hardy Fire accepts the CAF's offer, it will not incur any variable selling expenses for this order. Using Incremental analysis, determine whether Hardy Fibre should accept the CAP's offer. Incremental revenue Incremental cost: Variable cost Incremental income $ Hardy Fiber should the Canadian forces offer Assume Hardy Fibre can now sell 1,000,000 undergarments in the open market at $6.00 per unit. Using incremental analysis, determine whether Hardy Fire should accept the CAP's offer for the 180,000 garments Hardy Fibre should the CAF's offer