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Sheridan Fiber Company is the creator of Y - Go , a technology that weaves silver into its fabrics to kill bacteria and odor on
Sheridan Fiber Company is the creator of YGo a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. YGo has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 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.
tablePer Undergarment,Total,Direct materials,$$Direct labor,Variable manufacturing overhead,Fixed manufacturing overhead,Variable selling expenses,Totals$$
The US Army has approached Sheridan Fiber and expressed an interest in purchasing YGo 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 $ per undergarment to cover all other costs and provide a profit. Presently, Sheridan Fiber is operating at capacity and does not have any other potential buyers for YGo If Sheridan Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order.
Prepare an incremental analysis for the Sheridan Fiber. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
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