USA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $$1\mathrm{.}25$ per ounce. The company would still need $4$ ounces of dye per shirt. USA is reluctant to change because of the increase in costs $($and decrease in profit$),$ but the Environmental Protection Agency has threatened to fine the company $$130,000$ if it continues to use the harmful but less expensive dye.Given the preceding information, would USA be better off financially by switching to the environmentally friendly dye? $($Assume all other costs would remain the same.$)$If USA 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 USA 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.$)$Refer to requirement $2.$ How could the reduction in material and labor costs be accomplished? Are there any problems with this plan?PriceQuantityFabric$$8$ per yardLabor$$16$ per DMLHDye$*$$$0\mathrm{.}50$ per ounce$*$For colored T$-$shirts only$0\mathrm{.}75$ yard per unit$0\mathrm{.}25$ DMLH per unit$4$ ounces per unitCost per unit of output$$$$6$ per unit$4$ per unit$2$ per unitBudgeted sales and selling price per unit are as follows:Budgeted SalesWhite T$-$shirtsColored T$-$shirts$10,000$ units$50,000$ unitsSelling Price per Unit$$12$ per T$-$shirt$$15$ per T$-$shirt