Wildhorse Fiber Company is the creator of Y-Go, a technology that weaves silver into its...

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Accounting

Wildhorse 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 1,048,000 Y-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.
The U.S. Army has approached Wildhorse Fiber and expressed an interest in purchasing 249,800 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 $1.10 per undergarment to cover all other costs and provide a profit.
Presently, Wildhorse Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Wildhorse Fiber
accepts the Army's offer, it will not incur any variable selling expenses related to this order.
Prepare an incremental analysis for the Wildhorse Fiber. (Enter negative amounts using either a negative sign preceding the number eg.-45
or parentheses e.g.(45).)
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