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Tamarisk 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
Tamarisk 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 YGo undergarments each year. The per-unit and total costs for the undergarment are as follows: The Canadian Armed Forces (CAF) has approached Tamarisk and expressed an interest in purchasing 189,000 Y-Go undergarments for soldiers stationed in extremely warm climates. 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, Tamarisk is operating at 65% capacity and does not have any other potential buyers for Y-Go. If Tamarisk accepts the CAF's offer, it will not incur any variable selling expenses for this order. Using incremental analysis, determine whether Tamarisk should accept the CAF's offer. (Round per unit calculations to 2 deci places, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Incremental revenue $ Incremental cost: Variable cost Incremental income \$ Tamarisk should the Canadian forces' offer
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