Please Correct solution with full details and Do not Give Image format otherwise down Vote Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number e.g.-45 orparentheses e.g. (45).)RevenuesVariable costs:Direct materialsDirect laborVariable overheadTotal variable costsNet income$RejectOrder0000AcceptOrderNet IncomeIncrease(Decrease) Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing whilemanaging heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce1,000,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at fullcapacity are as follows.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling expensesTotalsPer Undergarment$20.7511.50.25$5.5Total$2,000,000750,0001,000,0001,500,000250,000$5,500,000The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 250,000 Y-Go undergarments for soldiers inextremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overheadcosts. In addition, the Army has agreed to pay an additional $1 per undergarment to cover all other costs and provide a profit.Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts theArmy's offer, it will not incur any variable selling expenses related to this order.

INCREAMENTAL ANALYSIS Increamental Analysis is help to take the decision related to accepting the…

Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Revenues Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income $ Reject Order 0 0 0 0 Accept Order Net Income Increase (Decrease)

Prepare an incremental analysis for the Klean Fiber. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Revenues Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income $ Reject Order 0 0 0 0 Accept Order Net Income Increase (Decrease)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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