Progress Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothin, while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the compan produce 1,090,000 Y-Go undergarments year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Total Undergarment Direct materials $1.94 $2,114,600 Direct labor 0.59 643,100 Variable manufacturing overhead 1.07 1,166,300 Fixed manufacturing overhead 1.46 1,591,400 Variable selling expenses 0.32 348,800 Totals $5.38 $5,864,200 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 $1.01 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. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject cept Increase Order Order (Decrease) 20 888 DII F4 F6 F7 FB F9 F10 F3 # %24 & 3 4 8 W E R Y U F G J K C V mand

ICICS urrent Attempt in Progress Klean 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 1,090,000 Y-Go undergarments year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Total Per Undergarment $1.94 0.59 1.07 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Totals $2,114,600 643,100 1,166,300 1,591.400 348,800 $5.864.900 1.46 0.32 $5.38 The U.S. Army has approached Klean Fiber and expressed and to purchasing 249,400 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit costro materials direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional dergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does notre any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Reject Order Accept Order