Doney bererages manefscturos its own juce botives. The botlles are made fiom podyenyione Datioys management n anayzing whether the change to eve botte moids io reduce PeT planc urage thoud be made Masegentent eapects the following number of urce becies to be used in becrise rocycled Pe is less expersive fan vigin PLI the uscomern year: (Click theicken ia wew the number of solla bottes ) Fless the nawements toletil Data table For the upcoming year, management expects the beginning inventory of PET to be 6,000 kilograms, while ending inventory is expected to be 4,510 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 quartor's PET needs More info Darley is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over juice bottle molds to produce the bottles. One idea Darley's engineers have suggested is to retrofit the juice bottle molds and change the plastic formulation slightly so that 10% less PET plastic is used for each bottle. The average kilograms of PET per juice bottle before any redesign is 0.01kg. The cost of retrofitting the juice bottle molds will result in a one-time charge of $25,897, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $5.00 to $5.30. Requirements 1. Using the original data (before any redesign of juice bottles), prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total 2. Assume that the company retrofits the juice bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET) What is the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retrofitting the juice bottle molds. Should the company make the change? Explain your rationale