Damon Beverages manufactures its own juice bottes. The bottles are made from polyethylene terephthalate (PET), lightweight yet strong plastic. Damon uses as much PET recycled resin pellets in its botties as it can, both because using recycled PET helps Damon to meet its sustainability goals and because recycled PET is less expensive than virgin PET. Can the leon More info Damon is continuing to search for ways to reduce its costs and its impact on the emvironment PET plastic is melted and blown over juice bottle molds to produce the botes. One ides Damon's engineers have suggested in to retrotte juice bottle molds and change the plastic formulation sightly so that 15% less PET plastic is used for each bottle. The average klograms of PET per juice botte before any redesign is 0.02 kg. The cost of retrofitting the juice botte molds will result in a one-time charge of $131,718, whde the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $5.00 to $5.20 Data table Damon's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of juice bottles to be used in the upcoming year (Click the icon to view the number of soda botes.) Read the requirements Number of juice bottles to be produced. Quarter 1 Quarter 2 2,000,000 2,700,000 Quarter 3 Quarter 4 3,000,000 2,800,000 For the upcoming year, management expects the beginning inventory of PET to be 11,000 kilogram, while ending inventory expected to be 11.710 kilograms. During the first three quarters of the year management wants to keep the ending inventory of PET at the end of each quarter equal to 20% of the following qu PET s Print Done Beginning inventory of direct materials Print Done