-76 Current Attempt in Progress Crane 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 a year. The per unit and the total costs for an individual garment when the company operatera capacity are as follows Per Undergarment Total $1.94 $2.114,600 0.59 643,100 1.07 1.166.300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Totals 146 1591.400 0.32 348.800 $5.38 $5.864.200 The U.S. Army has approached Crane and expressed an interest in purchasing 249.400 Y Go undergarments for soldiers in extremely 3 (325) Q1:39:00 Question 26 of 28 -16 The U.S. Army has approached Crane 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 Crane is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Crane accepts the Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Crane. (Enter negative amounts using elther a negative sign preceding the number es: 45 or parentheses es. (45) Net Income Increase (Decrease) Accept Order Reject Order Revenues Variable costs: Test 3 (325) 01:38:51 Question 26 of 28 - /6 Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net Income $ Direct labor Variable overhead Total variable costs Net income $ Should Crane accept the Army's offer? Crane should the Army's offer Attempts: 0 of 1 used Shower IN Save for Later 12C O 2 RI Type here to search