National Apparel (NA) 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 1. Given the preceding information, would Na 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 cel to the nearest cent.) Increase in Costs Assuming NA uses New Dyo Units to dye 78,000 x Cost differential between dyes 312,000 Increase in costs (from new dye) for the year Would NA be better off financially by switching to the environmentally friendly dye? Yes, NA will be better off financially by switching to the environmentally friendly dye. Requirement 2. Assume NA chooses to be environmentally responsiblo regardless of cost and it switches to the new dyo. The production manager suggests trying Kaizen costing, USA can reduce fabric and labor costs each by 2% 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) Requirement 2. Assume NA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen conting. USA con reduce fabric and labor costs each by 2% 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 Month Cost 1 2 3 4 ales corr 6 than Chery ? UiT Month Cost 1 2 3 4 6 7 8 9 10 11 12 Total Enter any number in the edit fields and then click Check Answer. 5 parts remaining Clear All 3 of 3 (3 complete) plain white and solid-colored T-shirts, Budgeted inputs and alternative dye information include ted input data.) (Click the icon to view alternative dye information.) i Data Table Price Quantity Cost per unit of output Fabric $16 per yard 0.50 yard per unit $ 8 per unit Labor $8 per DMLH 0.50 DMLH per unit $ 4 per unit Dye $0.20 per ounce 5 ounces per unit $ 1 per unit *For colored T-shirts only Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts 6,000 units $ 14 per T-shirt Colored T-shirts 78,000 units $ 15 per T-shirt Print Done t fields and then click Check Answer. Clear All ivacy Policy Copyright 2020 Pearson Education Inc. All Rights Reserved lain white and solid-colored T-shirts. Budgeted inputs and alternative dye information includ ed input data.) i (Click the icon to view alternative dye information.) More Info - NA 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 5 ounces of dye per shirt. NA 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 $314,600 if it continues to use the harmful but less expensive dye. Print Done ds and then click Check Answer. Clear All