The Carmine Corporation uses multicolor molding to make plastic lamps. The molding operation has a capacity of 380,000 units per year. The demand for lamps is very strong. Carmine will be able to sell whatever output quantities it can produce at $70 per lamp. Carmine can start only 380,000 units into production in the molding department because of capacity constraints on the molding machines. If a defective unit is produced at the molding operation, it must be scrapped at a net disposal value of zero. Of the 380,000 units started at the molding operation, 76,000 defective units (20%) are produced. The cost of a defective unit, based on total (fixed and variable) manufacturing costs incurred up to the molding operation, equals $33 per unit, as follows: (Click the icon to view the costs.) Carmine's designers have determined that adding a different type of material to the existing direct materials would result in no defective units being produced, but it would increase the variable costs by $4 per lamp in the molding department. Read the requirements. Direct materials (variable) Direct manufacturing labor, setup labor, and materials-handling labor (variable) Equipment, rent, and other allocated overhead, including inspection and testing costs on scrapped parts (fixed) Total $12 per unit 10 per unit 11 per unit $33 per unit 1. Should Carmine use the new material? Show your calculations. 2. What nonfinancial and qualitative factors should Carmine consider in making the decision