Creative Comfort Apparel (CCA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alternative dye information include the following: (Click the icon to view the budgeted input data.) (Click the icon to view alterative dye information.) Read the requirements. Requirement 1. Given the preceding information, would CCA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) Begin by calculating the increase in costs from switching to the environmentally friendly dye. (Round all intermediary calculations and the amounts you input in the cells to the nearest cen Increase in Costs Assuming CCA uses New Dye Cost differential between dyes Price per DMLH Price per yard Selling price per unit Units to dye K Creative Comfort Apparel (CCA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alternative dye (Click the icon to view the budgeted input data.) (Click the icon to view alternative dye information.) Read the requirements. Requirement 1. Given the preceding information, would CCA be better off financially by switching to the environmentally frie Begin by calculating the increase in costs from switching to the environmentally friendly dye. (Round all intermediary calculat Increase in Costs Assuming CCA uses New Dye Inc Cost differential between dyes Price per DMLH Price per yard Selling price per unit Units to dye t 1. Giv culating Data table Price Quantity Cost per unit of output Incr Fabric $8 per yard 0.75 yard per unit $ 6 per unit Labor in costs (fr $16 per DMLH Dye $0.50 per ounce *For colored T-shirts only 0.50 DMLH per unit $ 8 per unit 2 ounces per unit $ 1 per unit Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts Colored T-shirts 8,000 units $ 16 per T-shirt 64,000 units $ 17 per T-shirt Print Done iven g the Requirement creas 1. ts (from 2. 3. Given the preceding information, would CCA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) If CCA chooses to be environmentally responsible and switches to the new dye, the changes in the process will allow production managers to implement Kaizen costing. If CCA can reduce fabric and labor costs each by 2% per month on all the shirts it manufactures, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions.) Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? Print Done - X sa u= the More info eas From CCA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.50 per ounce. The company would still need 2 ounces of dye per shirt. CCA is reluctant to change because of the increase in costs (and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $130,000 if it continues to use the harmful but less expensive dye. Print Done - X Sa