pls answer multiple choice question at the end everything else is correct
E9-17A (similar to) Question Help o Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET). a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dixson to meet ils sustainability goals and because recycled PET is less experisive than virgin PET (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view the number of soda bottles.) Read the requirements. Requirement 1. Using the original data (before any redesign of soda bottles), prepare a direct materials budget to calculate the cost Data Table Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of soda pop bottles to be produced .... 2,500,000 2,600,000 2.700,000 3,300,000 For the upcoming year, management expects the beginning inventory of PET to be 120,000 kilograrns, while ending inventory is expected to be 158,900 kilograms. During the first three quarters of the year, management wants to keep the ending inventory of PET at the end of each quarter equal to 30% of the following quarter's Year 11,100,000 PET needs 0.16 Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced 2,500,000 2,600,000 2,700,000 3,300,000 Multiply by: Quantity of direct materials needed per unit 0.16 0.16 0.16 0.16 Quantity of PET needed for production 400,000 416,000 432,000 528,000 Desired ending inventory 124,800 129,600 158,400 158,900 Total quantity needed 524,800 545,600 590,400 686,900 Less: Beginning inventory of direct materials 120,000 124,800 129,600 158.400 Quantity to purchase 404,800 420,800 460,800 528,500 $ 6.00 S 6.00 S 6.00 S 6.00 $ 1.776.000 158,900 A More Info Plus: 1,934,900 120,000 1,814,900 6.00 Dixson is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Dixson's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 20% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.16 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $1,839,160, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $6.00 to $6.20. Click to select your answer and then click Check Answer. 2 All parts showing Clear All W E9-17A (similar to) Question Help 0 Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should made. a lightweight yel strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because Managernent expects the following number of soda bottles to be used in the upcoming year: using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET (Click the icon to view the number of soda bottles.) (Click the icon to view more information.) Read the requirements. Total cost of direct material purchases $ 2,428,800 $ 2,524,800 $2,764,800 3,171,000 $10,889,400 Requirement 2. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced 2,500,000 2,800,000 2,700,000 3,300,000 11,100,000 Multiply by: Quantity of direct materials needed par unit 0.128 0.128 0.128 0.128 0.125 Quantity of PET needed for production 320,000 332.800 345,600 422.400 1,420,800 Plus: Desired ending inventory 99,840 103,680 126,720 158,900 158,SKOD Total quantity needed 419,840 436.480 472,320 581,300 1,579,700 Less: 120,000 99,840 Beginning Inventory of direct materials 103,680 126,720 120.000 W E9-17A (similar to) Question Help O Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: B Click the loon to view the number of soda bottles.) Read the requirements. Quantity to purchase Multiply by: Cost per kilogram 299,840 336.640 368,640 454,580 1.459.700 S 6.20 S 6.20 $ 6.20 $ 6.20 S 6.20 $ 1,859,008 S 2,087,168 $2,285,568 2,618,396 S 9,050,140 Total cost of direct material purchases Requirement 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retrofitting the soda bottle rnolds. Should the company make the change? Explain your rationale. Begin by computing the direct material cost savings from making the change to using less PET? Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Savings from reducing PET content of each bottle $ 569,792 S 437.632 $479,232 S 352,604 S 1.839 260 Compare the total of those savings to the cost of retrofitting the soda bottle molds for the first year Total savings for the year - Cost of retrofitting the molds Difference $ 1,839,260 $ 1,839,160 100 Should the company make the change? Explain your rationale. O A. The company should not make the change (retrofiting). Reviewing the comparison of the total savings to the cost of retrofitting makes it appear that they should not retrofit. However, after the first year the annual savings are significant. Click to select your answer and then click Check Answer. ? Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view the number of soda bottles.) Read the requirements. of those savings to the cost of retrofitting the soda bottle molds. Should the company make the change? Explain your rationale. Begin by computing the direct material cost savings from making the change to using less PET? Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Savings from reducing PET content of each bottle $ 569,792 $ 437,632 $ 479,232 $ 352,604 $ 1,839,260 Compare the total of those savings to the cost of retrofitting the soda bottle molds for the first year. Difference Total savings for the year 1,839,260 Cost of retrofitting the molds $ 1,839,160 = $ 100 Should the company make the change? Explain your rationale. A. The company should not make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting makes it appear that they should not retrofit. However, after the first year the annual savings are significant. B. The company should make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should retrofit. There is net savings in the first year and after the first year the annual savings are significant. C. The company should not make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should not retrofit. There is a net cost the first year, therefore, they will never recoup the cost of retrofitting. OD. The company should make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should retrofit as the net savings is more than twice the cost of retrofitting the molds. E9-17A (similar to) Question Help o Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET). a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dixson to meet ils sustainability goals and because recycled PET is less experisive than virgin PET (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view the number of soda bottles.) Read the requirements. Requirement 1. Using the original data (before any redesign of soda bottles), prepare a direct materials budget to calculate the cost Data Table Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of soda pop bottles to be produced .... 2,500,000 2,600,000 2.700,000 3,300,000 For the upcoming year, management expects the beginning inventory of PET to be 120,000 kilograrns, while ending inventory is expected to be 158,900 kilograms. During the first three quarters of the year, management wants to keep the ending inventory of PET at the end of each quarter equal to 30% of the following quarter's Year 11,100,000 PET needs 0.16 Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced 2,500,000 2,600,000 2,700,000 3,300,000 Multiply by: Quantity of direct materials needed per unit 0.16 0.16 0.16 0.16 Quantity of PET needed for production 400,000 416,000 432,000 528,000 Desired ending inventory 124,800 129,600 158,400 158,900 Total quantity needed 524,800 545,600 590,400 686,900 Less: Beginning inventory of direct materials 120,000 124,800 129,600 158.400 Quantity to purchase 404,800 420,800 460,800 528,500 $ 6.00 S 6.00 S 6.00 S 6.00 $ 1.776.000 158,900 A More Info Plus: 1,934,900 120,000 1,814,900 6.00 Dixson is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Dixson's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 20% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.16 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $1,839,160, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $6.00 to $6.20. Click to select your answer and then click Check Answer. 2 All parts showing Clear All W E9-17A (similar to) Question Help 0 Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should made. a lightweight yel strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because Managernent expects the following number of soda bottles to be used in the upcoming year: using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET (Click the icon to view the number of soda bottles.) (Click the icon to view more information.) Read the requirements. Total cost of direct material purchases $ 2,428,800 $ 2,524,800 $2,764,800 3,171,000 $10,889,400 Requirement 2. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Dixson Beverages Direct Materials Budget For quarters 1 through 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced 2,500,000 2,800,000 2,700,000 3,300,000 11,100,000 Multiply by: Quantity of direct materials needed par unit 0.128 0.128 0.128 0.128 0.125 Quantity of PET needed for production 320,000 332.800 345,600 422.400 1,420,800 Plus: Desired ending inventory 99,840 103,680 126,720 158,900 158,SKOD Total quantity needed 419,840 436.480 472,320 581,300 1,579,700 Less: 120,000 99,840 Beginning Inventory of direct materials 103,680 126,720 120.000 W E9-17A (similar to) Question Help O Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: B Click the loon to view the number of soda bottles.) Read the requirements. Quantity to purchase Multiply by: Cost per kilogram 299,840 336.640 368,640 454,580 1.459.700 S 6.20 S 6.20 $ 6.20 $ 6.20 S 6.20 $ 1,859,008 S 2,087,168 $2,285,568 2,618,396 S 9,050,140 Total cost of direct material purchases Requirement 3. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retrofitting the soda bottle rnolds. Should the company make the change? Explain your rationale. Begin by computing the direct material cost savings from making the change to using less PET? Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Savings from reducing PET content of each bottle $ 569,792 S 437.632 $479,232 S 352,604 S 1.839 260 Compare the total of those savings to the cost of retrofitting the soda bottle molds for the first year Total savings for the year - Cost of retrofitting the molds Difference $ 1,839,260 $ 1,839,160 100 Should the company make the change? Explain your rationale. O A. The company should not make the change (retrofiting). Reviewing the comparison of the total savings to the cost of retrofitting makes it appear that they should not retrofit. However, after the first year the annual savings are significant. Click to select your answer and then click Check Answer. ? Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps Dixson to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (Click the icon to view more information.) Dixson's management is analyzing whether the change to the bottle molds to reduce PET plastic usage should be made. Management expects the following number of soda bottles to be used in the upcoming year: (Click the icon to view the number of soda bottles.) Read the requirements. of those savings to the cost of retrofitting the soda bottle molds. Should the company make the change? Explain your rationale. Begin by computing the direct material cost savings from making the change to using less PET? Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Savings from reducing PET content of each bottle $ 569,792 $ 437,632 $ 479,232 $ 352,604 $ 1,839,260 Compare the total of those savings to the cost of retrofitting the soda bottle molds for the first year. Difference Total savings for the year 1,839,260 Cost of retrofitting the molds $ 1,839,160 = $ 100 Should the company make the change? Explain your rationale. A. The company should not make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting makes it appear that they should not retrofit. However, after the first year the annual savings are significant. B. The company should make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should retrofit. There is net savings in the first year and after the first year the annual savings are significant. C. The company should not make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should not retrofit. There is a net cost the first year, therefore, they will never recoup the cost of retrofitting. OD. The company should make the change (retrofitting). Reviewing the comparison of the total savings to the cost of retrofitting shows that they should retrofit as the net savings is more than twice the cost of retrofitting the molds
