Wildhorse Fiber Company is the creator of YGo a technology that weaves silver into its fabrics to kill bacteria and odor on clothing
while managing heat. YGo has become very popular in undergarments for sports activities. Operating at capacity, the company can
produce YGo 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 US Army has approached Wildhorse Fiber and expressed an interest in purchasing YGo 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 $ per undergarment to cover all other costs and provide a profit.
Presently, Wildhorse Fiber is operating at capacity and does not have any other potential buyers for 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
or parentheses eg