Requirement 2. Assume AA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If USA can reduce fabric and labor costs each by 1% per month, by how much will overall costs decrease at the end of 12 months? First calculate the fabric costs resulting from the Kaizen improvements, then in the next step calculate the labor costs. (Round all intermediary calculations and the amounts you input in the cells to the nearest dollar.) Fabric Cost Labor Cost Month 2 3 6 7 8 9 10 11 12 Total O Data Table Fabric Labor Dye* Price S16 per yard $16 per DMLH SO.SO per ounce Quantity 0.75 yard per unit 0.25 DMLH per unit 6 ounces per unit Cost per unit of output S 12 per unit S 4 per unit S 3 per unit 'For colored T-shirts only Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit O More Into AA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs SIIIO per ounce The company would still need 6 ounces of dye per shirt. A.A 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 $215,700 if it continues to use the harmful but less White T-shirts Colored T-shirts 13,000 units 71 ,OOO units s 18 per T-shirt S 22 per T-shirt expensive dye. print Done print Done Now determine how much overall costs will decrease at the end of 12 months. Total fabric and labor costs before Kaizen improvements Total fabric and labor costs after Kaizen improvements Cost decrease resulting from Kaizen improvements The net cost of combining the environmentally friendly dye and the Kaizen improvements is S