Sweet Acacia is the creator of YG0, a technology that weaves silver into fabrics to...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Sweet Acacia is the creator of YG0, 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 Y-Go undergarments each year. The per-unit and total costs for the undergarment are as follows: The Canadian Armed Forces (CAF) has approached Sweet Acacia and expressed an interest in purchasing 200,000 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. Sweet Acacia is operating at 70% capacity and does not have any other potential buyers for Y.Go. If Sweet Acacia accepts the CAF's offer, it will not incur any variable selling expenses for this order. Using incrementa analysis, determine whether Sweet Acacla should accept the CAF s offer. (Round per unit calculations to 2. decimal plocer, es. 15.25 and final answers to 0 decimal ploces, es. 5,275.1 Sweet Acaciashould the Canadian forces' offer
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
