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The Celadon Corporation uses multicolor molding to make plastic lamps. 1) (Click the icon to view additional information.) (Cick the icon to view the cost

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The Celadon Corporation uses multicolor molding to make plastic lamps. 1) (Click the icon to view additional information.) (Cick the icon to view the cost of a defective unit) Celadon'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 $9 per lamp in the molding department. Read the requirements Requirement 1. Should Coladon use the new malerial? Show your calculationst Start by calculating the relevant costs of using the new material. Determine the formula, then enter the amounts to calculate the relevant costs. More info The molding operation has a capacity of 220,000 units per year. The demand for lamps is very strong. Celadon will be able to sell whatever output quantities it can produce at $30 per lamp. Celadon can start only 220,000 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 220,000 units started at the molding operation, 22,000 defective units (10%) are produced. Data table Requirements 1. Should Celadon use the new material? Show your calculations. 2. What nonfinancial and qualitative factors should Celadon consider in making the decision? Requirement 1. Should Celadon use the new material? Show your calculations. Start by calculating the relevant costs of using the now material. Determine the formula, then enter the amounts to caiculate the relevant costs

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