Q Secure https://edugen.wileyplus.com/edugen/it/main.uni Kimmel, Accounting, 6e
ID: 2576173 • Letter: Q
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Q Secure https://edugen.wileyplus.com/edugen/it/main.uni Kimmel, Accounting, 6e CALCULATOR PRINTER VERSION BACK Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heet. Y-Go has become very pepular in undergarments for sports activities. Operating at capaoty, the company can produce 1,039,000 Y Go underperments a year The per unit and the total costs for an individual garment when the company operates at full Exercise 20-4 capacity are as follows Total 2.07 0.58 Direct matenials Direct labor Variable manufacturing overhead Foxed manufacturing overhead Variable selling expenses $2,150,730 602,620 1,090,950 1,610,450 394,820 $5,849,570 1.55 0.38 The u.S. Army has approached kJean Fiber and expressed an interest in purchasing 249,200 Y-Go undergarments for soldiers in extremely warm dimates. The Army would pay the unit cost for direct matenials, direct labor, and vanable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover ll other costs and provide a profit. Presently, Klean ber s operating at 70% capac ty and does not heve any other potential buyers for Y-Go. If Klean Fter accepts the not incur any vaniable seling expences related to this order 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).) Accept Net Income Order(Decrease) Reject variatie coses Direct materials Direct labor Variable everhead Total vaniable Net income Shoudld Klean Fiber accet the Army's offer? the Army's offer. Click if you would hke to Show Work for this question: Qeen Show Wark Question Attempts: O of 3 used SAVE Fon LAExplanation / Answer
as selling price per unit of existing 70% units does not know that why unable to calculate the existing net income.
but the incemental net income will be $ 254184.
Yes Klean Fibre accepts the army's offer.
Please note all values are in $.
For further clarification requried please comment.
Particulars Rejects order Accepts order Net income Increase (Decrease) Revenue 0 1176224 1176224 variable costs: Direct Materials 0 515844 515844 Direct Labor 0 144536 144536 variable manufacturing overhead 0 261660 261660 Total variable costs 0 922040 922040 Net income(Revenue - total variable costs) 0 254184 254184Related Questions
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