Docker Beveragos manulactures its own juice bottles. The bottles are made from polyethylene terephthaiate (PET), a lightweight yet strong plastic. Decker uses as much PET rocycled resin petiets in its bottles as it can, both becouse using recycled PET holps Dockor to meet its sustainability goals and because recycled PET is less expensive than virgin PET. (1) (Cick the icon to view more information) Deckor's managoment is analyzing whether the change to the botte mids to redice PET plastic usage should be made. Management expects the following number of ficico botith to be used in the upcoming year: (Click the icon to view the number of soda botles) Read the requitements. Requirement 1. Using the criginal dada (before any redesign of fuice bottlos), prepare a dinct materials budget to calculate the cost of PET purchases in esch quarter for the upcoming year and for the year in total. Start by preparing the direct materials budget through the total quantly needed, then complese the budget. Decker Boveragos manulactures its own juice botses, The bottes are made from polyethylone threphthalate (PET), a lightweight yet strong plastic. Decker uses as much PET recycled resin peltels in lis bettes as it can, boh bechuse using recycled PET helps Decker to meel its sutsinobily goals and because recycled PET la less expensive than vingin PET. (Cick the icon to view more information.) Decker's management is analying whether the change to the bottle molds to reduce PET plastlc usage should be made. Management expects the following number of ficice bottles to be used in the upeorning yoar: (Click the icon to viow the number of sodi bettios.) Resd the teaulements buaget to criculate the coet of PET purchases in wach quarter for the upcoming year and for the year in total for this poseble sceenarlo. pelets in las botwes as it can, both becouse using recycled PET helps Deckor to meot iss sustanablity goais and because fecycled PET is less expensive than virgin PET. ( ) (Click the icon to view more inflormation) the upcoming year (Cick the icon to vew the number of soda boetles.) Read the cequirements. Begin by computing the direct material cost savingt from making the change to using less PET? Decker Beverages manufactures its own juice botties. The bottles are made from polyothylene Decker's management is ansycing whether the change to the bocle molds to reduce PEr Requirement 3. Compare the cost of PET plastio for Requirement 1 (criginal dita) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings frem making the change to using less PET? Compare the total of those savings to the cost of rotrofiting the juice bottle molds. Should the compary make the change? Explain your rationale. Begin by computing the direct material cost savings from making the change to using less PET? Compare the total of those savings to the cost of retroliting the juice botile molds for the frst year. Should the company make the change? Explain your rationale. A. The company should make the change (retrofiting). Reviewing the comparison of the fotal savings to the cost of retrofiting shows that they should retrofit as the net savings is moee than fwice the cost of retrofiting the molds. B. The company should not make the change (rotrofeting). Rieviewing the comparison of the total savings to the cost of retrofitting shows that they ahould not retrofit. There is a net cost the first year, therefoce, they will never recoup the cost of retrofiting. c. The company should make the change (retrofiting). Reviewing the comparison of the lotal savings to the cost of retrofiting shows that they should teatrofit. There is net savings in the frst year and afeer the first year the annual savings are slonificant. D. The compary should not make the change (retrofting). Roviewing the comparison of the total savings to the cost of retrofiting makes it appear that they should not retroft. Howerves, anter the first year the annual savings are significant. More info Decker is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over juice bottle molds to produce the bottles. One idea Decker's engineers have suggested is to retrofit the juice 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 juice bottle before any redesign is 0.01kg. The cost of retrofitting the juice bottle molds will result in a one-time charge of $127,440, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $6.00 to $6.20. Data table For the upcoming year, management expects the beginning inventory of PET to be 3,300 kilograms, while ending inventory is expected to be 3,200 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 10% of the following quarter's PET needs