Its botles as if can, both beceuse using recycled PET helps Darley to meet its susta hablity goals and brcause recycied PET is less expensive than virgin PET Darley is corhiruing to search for ways to redce its costs and is mpact on the erwionment. PET plaste is meited and blown cver juce botte moulds so produce the botties, One iden Daxloy's engineecs have suggested is to retroft the juice botle moulss and chinge the plaste formulation sightly co that 25K loss PET plastic is used for each bottle. The averoge kicogame of PET per fuise botio befoen any redesign is 0,00kg. The colt of retrofting the juice botte moulds wil result in a one-time charge of $124,163, while the piaclic reformulation wif cause the averege cost per kicgrem of PET plastic to change from 56.0010$6.20. Darleys management is analyzing whehar Be change to the botfe moulds to reduce PET piastic usage should be mace. Managament axpecta be following number of fucce berties to be used in the upcorning year Requirements Data table 1. Using the original data (before any redeuign of juice botten), pregere a droet malerials budgat to caiculate the cost of PET purchases in each quartec for the upcoming year and for the yearin total. 2. Assume that the company reschit the Juce betse moulds and changos the plaste formulaton sightly so that less PET plaste is used in each berti. Noe prepare a direct malerials budget to calcuiate the cost of PLI purchases in each quarter for the uptoming yoar and for the year in total for this pessble scenario. 3. Compare the cost of PIT piaste for Requrement 1 (original data) and for Fequirement 2 (making change to vaing less PET) What is the direct material cost savings from making the Change to vaing less Ptr? Cempare the fola of thcse savings to the cost of retrohating the jace botte mouls. Should the comcary make the change? Fixplain your fationale. Requirement 1. Using the criginal data (before any redesign of juice bottles), prepare a direct mulorials budget to calculale the cost of PET purchases in aach quarter for the upcoming year and for the year in tocal. Start by preparing the direct malerisls budget through the total quantity needed, and then complete the budget. (Round all answers to the nearest number. For the quantity of direct materiale needed per unit, enter round your answer to three decimal places X.Xocx. Use parentheses or a minus sign for beginning inventory balances. Round cost per kilogram to the nearest Requirement 2. Assume that the company relrolits the juice botle moulds and changes the plastic formulabion sightify so that less PET plastic is used in each bottie. Now prepare a direct matertals budgot to calculato the cost of PET purchasas in each quarter for the upcoming yeat and for the year in total for tis possible scenatio. Start by preparing the diect materias bucget through the total cuanty noedod, and then cemplete the budget. (Round all answers to the nearest number. For the quantity of direct materials needed pur unit, enter round your anwwer to three decimal places x.xx0x, Use parentheses or a minus sign for beginning inventery balances. Round cost per killogram to the natest Requirement 3. Compare the ccat of PET plastic for Requirement 1 (original data) end for Roquirement 2 (making change to using less PET.) What is the direct material cost savings from making the change so using less PET? Compare the solal of those savings to the cost of retrofiting the juice bottle moulda. Should the company make the chasge? Explain your rationale. (Round at answers to the nearest doltar.) Cegin by computing the diect matarial cost savings trem making the chango to using loss PET. Compare the total of those sevings to ene cost of retronting the jice botlle moulds for the fics yeer, (Use parentheses or a minus sign for a negative difference.) Should the campany make the erange? Explain your robonale. A. The company should make the change (retroleting). Reviewing the comparison of the toeal savings to ene coat of retrofiting ahows that it should retrofit as the not savings is more than twice the cost of retrofiting the moulds. 8. The company should make the change (rotrofting). Aevewing the comparison of the annuai savings to the cost of ratrotetieg makes it appear that it inould not retofit However, ater the frut year the annuad savings are significand c. The company shoum cot make the charge (retrothing). Reveraing the comparison of the lotal savings is the cont of retrotiting ahows that it whould not retrofi. There is a net comi in then frat Year, therefore, A wit naver recoup the cost at rotrenting D. The carpany should mot make the change (retrofiting). Revising the correarison of the toal savings lo the coet of retrofing thows that a shsuld retrofit. There is net kavhgs in the frot year and after the frst year the arnual sevings are significant Its botles as if can, both beceuse using recycled PET helps Darley to meet its susta hablity goals and brcause recycied PET is less expensive than virgin PET Darley is corhiruing to search for ways to redce its costs and is mpact on the erwionment. PET plaste is meited and blown cver juce botte moulds so produce the botties, One iden Daxloy's engineecs have suggested is to retroft the juice botle moulss and chinge the plaste formulation sightly co that 25K loss PET plastic is used for each bottle. The averoge kicogame of PET per fuise botio befoen any redesign is 0,00kg. The colt of retrofting the juice botte moulds wil result in a one-time charge of $124,163, while the piaclic reformulation wif cause the averege cost per kicgrem of PET plastic to change from 56.0010$6.20. Darleys management is analyzing whehar Be change to the botfe moulds to reduce PET piastic usage should be mace. Managament axpecta be following number of fucce berties to be used in the upcorning year Requirements Data table 1. Using the original data (before any redeuign of juice botten), pregere a droet malerials budgat to caiculate the cost of PET purchases in each quartec for the upcoming year and for the yearin total. 2. Assume that the company reschit the Juce betse moulds and changos the plaste formulaton sightly so that less PET plaste is used in each berti. Noe prepare a direct malerials budget to calcuiate the cost of PLI purchases in each quarter for the uptoming yoar and for the year in total for this pessble scenario. 3. Compare the cost of PIT piaste for Requrement 1 (original data) and for Fequirement 2 (making change to vaing less PET) What is the direct material cost savings from making the Change to vaing less Ptr? Cempare the fola of thcse savings to the cost of retrohating the jace botte mouls. Should the comcary make the change? Fixplain your fationale. Requirement 1. Using the criginal data (before any redesign of juice bottles), prepare a direct mulorials budget to calculale the cost of PET purchases in aach quarter for the upcoming year and for the year in tocal. Start by preparing the direct malerisls budget through the total quantity needed, and then complete the budget. (Round all answers to the nearest number. For the quantity of direct materiale needed per unit, enter round your answer to three decimal places X.Xocx. Use parentheses or a minus sign for beginning inventory balances. Round cost per kilogram to the nearest Requirement 2. Assume that the company relrolits the juice botle moulds and changes the plastic formulabion sightify so that less PET plastic is used in each bottie. Now prepare a direct matertals budgot to calculato the cost of PET purchasas in each quarter for the upcoming yeat and for the year in total for tis possible scenatio. Start by preparing the diect materias bucget through the total cuanty noedod, and then cemplete the budget. (Round all answers to the nearest number. For the quantity of direct materials needed pur unit, enter round your anwwer to three decimal places x.xx0x, Use parentheses or a minus sign for beginning inventery balances. Round cost per killogram to the natest Requirement 3. Compare the ccat of PET plastic for Requirement 1 (original data) end for Roquirement 2 (making change to using less PET.) What is the direct material cost savings from making the change so using less PET? Compare the solal of those savings to the cost of retrofiting the juice bottle moulda. Should the company make the chasge? Explain your rationale. (Round at answers to the nearest doltar.) Cegin by computing the diect matarial cost savings trem making the chango to using loss PET. Compare the total of those sevings to ene cost of retronting the jice botlle moulds for the fics yeer, (Use parentheses or a minus sign for a negative difference.) Should the campany make the erange? Explain your robonale. A. The company should make the change (retroleting). Reviewing the comparison of the toeal savings to ene coat of retrofiting ahows that it should retrofit as the not savings is more than twice the cost of retrofiting the moulds. 8. The company should make the change (rotrofting). Aevewing the comparison of the annuai savings to the cost of ratrotetieg makes it appear that it inould not retofit However, ater the frut year the annuad savings are significand c. The company shoum cot make the charge (retrothing). Reveraing the comparison of the lotal savings is the cont of retrotiting ahows that it whould not retrofi. There is a net comi in then frat Year, therefore, A wit naver recoup the cost at rotrenting D. The carpany should mot make the change (retrofiting). Revising the correarison of the toal savings lo the coet of retrofing thows that a shsuld retrofit. There is net kavhgs in the frot year and after the frst year the arnual sevings are significant