Simple Life Apparel (SLA) 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 \$receding information, would SLA 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.) 1. Given the preceding information, would SLA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) 2. If SLA 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 SLA can reduce fabric and labor costs each by 1% 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.) 3. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? Data table FabricLaborDyePrice$14peryard$16perDMLH$0.20perounceQuantity0.50yardperunit0.50DMLHperunit5ouncesperunitCostperunitofoutput$$$7perunit8perunit1perunit *For colored T-shirts only Budgeted sales and selling price per unit are as follows: \begin{tabular}{lrcc} & Budgeted Sales & Selling Price per Unit \\ \hline White T-shirts & 13,000 units & $ & 17 per T-shiit \\ Colored T-shirts & 71,000 units & $ & 19 per T-shirt \end{tabular} SLA 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. SLA 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 $279,600 if it continues to use the harmful but less expensive dye