Native Apparel (NA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alternative dye information include the following: (Click the icon to view alternative dye information.) (Click the icon to view the budgeted input data.) 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 cells to the nearest cent.) Increase in Costs Assuming NA uses New Dye - X Increase in costs (from new dye) for the year Data table More info NA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.75 per ounce. The company would still need 4 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 $427,700 if it continues to use the harmful but less expensive dye. Requirement Price Fabric Labor Dye $16 per yard $12 per DMLH $0.50 per ounce *For colored T-shirts only Quantity 0.75 yard per unit 0.50 DMLH per unit Cost per unit of output $ 12 per unit $ 6 per unit 4 ounces per unit $ 2 per unit 1. Budgeted sales and selling price per unit are as follows: 2. Budgeted Sales Selling Price per Unit White T-shirts 11,000 units $ 21 per T-shirt Colored T-shirts 85,000 units $ 25 per T-shirt 3. 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.) If NA chooses to be environmentally responsible and switches to the new dye, the changes in the process will allow production managers to implement Kaizen costing. If NA can reduce fabric and labor costs each by 2% per month on all the shirts it manufactures, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions.) Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan