Hello, Can you help with Requirements 2 and 3
American Apparel (AA) 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 alternative dye information.) Read the Requirement 1. Given the preceding information, would AA 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 cent.) Increase in Costs Assumina Au uses New Dve Would AA be better off financially by switching to the environmentally friendly dye? be better off financially by switching to the environmentally friendly dye. 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? American Apparel (AA) 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 alternative dye information.) Read the requirements. 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.) American Apparel (AA) 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 alternative dye information.) Read the requirements. Data table Budgeted sales and selling price per unit are as follows: More info AA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.00 per ounce. The company would still need 6 ounces of dye per shirt. AA 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 $152,000 if it continues to use the harmful but less expensive dye. Requirement 1. Given the preceding information, would AA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) 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? (Round to the nearest dollar for calculating cost reductions.) 3. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan
