Price Cost per unit of output Fabric $ $8 per yard DMLH Quantity 0.75 yard per unit 0.25 DMLH per unit 5 ounces per unit Labor $8 per $ 6 per unit 2 per unit 1 per unit $ Dye* $0.20 per ounce *For colored T-shirts only Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts 11,000 units $ T-shirt Colored T-shirts 73.000 units $ 11 per 13 per T-shirt Print Done 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 $294,600 if it continues to use the harmful but less expensive dye. 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 the budgeted input data) Click the icon to view alternative dye information) Read the requirements Requirement Given the preceding information would Na be better of financially by switching to the environmentally honay ye? (Assume all other costs would remain the same) Begin by calculating the increase in costs from switching to the environmentally friendly dye (Round all intermediay calculations and the amounts you put in the cells to the nearest cent Increase in Costs Assuming NA uses New Dye Seling price per unit 600 X Units to dye 200 Increase in costs from new dye) for the year Would NA be better off financially by switching to the environmentally friendly dye? be better of financially by switching to the environmentally friendly dy Yes NAW SMA chooses to be environmentally responsible regardless of cost and it switches to the new dye The production manager suggests nying Kacer costing USA can reduce la y much will overall costs decrease at the end of 12 months contresting from the Katzen Improvements, then in the next step calculate the labor costs. Rond intermediary calculation and the amounts you to the cele NoNAwill not TO Requirement 2. Assume NA chooses to be environmentally responsible regards of cost and wiches to the new dye The production managers trying Karon costing USA.can reducere and later coach y 1% per month, by how much will overall costs decrease at the end of 12 months us calculate the folic corto renulting from the Kaizen improvements, thon in the next stop calculate the labor costs and all intermediary calodetons and the mount you put in the correcte Fabric Labor Month Cost Cost 1 2 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 the budgeted input data) (Click the icon to view alternative dye information) Read the requirements 8 9 10 11 12 Total Now determine how much overall costs will decrease at the end of 12 months Total fabric and labor costs before Kaizen improvements Total fabric and labor costs after Kaizen Improvements Cost decrease resulting from Katzen improvements The ne cost of combining the environmentally friendly dye and the Kaizen improvements is US Total Now determine how much overall costs will decrease at the end of 12 months Total fabric and labor costs betere Kaizen improvements Totaltatric and labor costs after Kaizon Improvements Cost decrease resulting from Katre improvements The netcost of combining the environmentally friendly dye and the Kalentements The not cost of combining the mironmentally friendly dye and the improvements the tine The NA combine the environmentally friendly dye and the Karen provenient Requirement. Refer to requirement 2. How could the reduction in material and labor costs be accomplished Arethany problem with this? Redaction in martis can be accomplished by educing waste andre Reduction in de labor can be accomed by reproving the chicken of operations and decreasing down the NA must be cared this Native Apparel (NA) manufactures plain white and solid colored T-shirts, Budpeted inputs and alternative dyo 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 sanie) Begin by calculating the increase in costs from switching to the environmentally friendly dye (Round all intermediwy calculation and the amounts you input in the cells to the nearest cant Increase in Costs Assuming NA uses New Dye Selling price per unit 6.00 Units to dye 200 Increase in costs (from new dye) for the year Would NA be better off financially by switching to the environmentally friendly dyo? be better off financially by switching to the environmentally friendly dye 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 costing USA 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 Katzen improvements, then in the next step calculate the labor costs (Round all intermediary calculations and the amounts you input in the 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 the budgeted input data) (Click the con 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 viendly dye? (Anume all other costs would remain the same Begin by calculating the increase in costs from switching to the environmentally friendly dye (Round all intermediary calculation and the amounts you input in the calls to the nearest ce Increase in Costs Assuming NA uses New Dye Selling price per unit 6.00 x Units to dye 200 Increase in costs from new dye) for the year Would NA be better off financially by swiching to the environmentally friendly dye? be better off financially by switching to the environmentally friendly dye Requirement 2. Assume NA chooses to be environmentally responsible regardless of cost and it switches to the new dye. The production manager suggests trying Razon conting. IUS 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 Katzen improvements, then in the next step calculate the labor cost (Round all intermediary calculations and the amounts you input in th Native Apparel (NA) manufactures plain white and sold-colored s Bated and alternative dye indation Include the following Click the icon to view the budgeted input data) (Click the icon to view temative Inte) Read the counts Www Requirement 2. Assume NA chooses to be environmentally responsible regardless of cost and it wiches to the new ye. The production manager wuests trying casting USA can reduce and labor custad by 1% per month by how much will overall costs decrease the end of 12 months First calculate the fabric costs resulting from the Karen Improvements, then in the next step calculate the labor cost Round a remediary cations and the amounts you trout in the cols to the rest dolar) ber Fek Cos Month Cost 1 2 Read the requirements 7 8 9 10 11 12 Total Now determine how much overall costs will decrease at the end of 12 months Total fabric and labor costs before Kaizen improvements Total fabric and labor costs after Kaizon Improvements Cost decrease resulting from Kaizen improvements tal wow determine how much overall costs will decrease at the end of 12 months otal fabric and labor costs before Kaizen Improvements Total fabric and labor costs after Kaizen improvements Cost decrease resulting from Kaizen improvements The net cost of combining the environmentally friendly dye and the Kaizen improvements The not cost of combining the environmentally friendly dye and the Kaizen beprovements is the fine. Therefore NA combine the environmentally free dye and the improve Requirement 3. Refer to requirement 2. How could the reduction in material and labor conta do sccompiled? Are there any problems with this plan? Reduction in materials can be accomplished by reducing waste and scrap Reduction in direct labor can be accomplished by improving the efficiency of operations and decreasing down tinNA must be careful that i 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 $294,600 if it continues to use the harmful but less expensive dye. Print Done i Data Table - X Price Fabric $8 per yard Labor $8 per DMLA Dye* $0.20 per ounce *For colored T-shirts only Quantity 0.75 yard per unit 0.25 DMLH per unit 5 ounces per unit Cost per unit of output $ 6 per unit $ 2 per unit $ 1 per unit Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts 11.000 units $ 11 per T-shirt Colored T-shirts 73.000 units $ 13 per T-shirt Print Done