Wildhorse  Fiber Company is the creator of Y-Go, a technology that weaves silver ints 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 pro 1.048.000 Y-Ge andergarments a year. The per unit and the total costs for an individual garment when the company operates at ful capacity are as follows.

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Per Undergarment Total Direct materials $2.08 $2.179.840 Direct labor 0.59 618,320 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 1.02 1,068,960 1.45 1.519.600 0.33 345,840 Totals $5.47 $5,732.560 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 proft. 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)) Revenues Variable costs: Direct materials Direct labor Variabite overhead Total variable costs Net income Reject Order Accept Order Net Income Increase (Decrease) SUPPORT Per Undergarment Total Direct materials $2.08 $2.179.840 Direct labor 0.59 618,320 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 1.02 1,068,960 1.45 1.519.600 0.33 345,840 Totals $5.47 $5,732.560 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 proft. 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)) Revenues Variable costs: Direct materials Direct labor Variabite overhead Total variable costs Net income Reject Order Accept Order Net Income Increase (Decrease) SUPPORT