Quality improvement, relevant costs, and relevant revenues. The Crimson Corporation uses multi- colored molding to make plastic lamps. The molding operation has a capacity of 200,000 units per year. The demand for lamps is very strong. Crimson will be able to sell whatever output quantities it can produce at S40 per lamp Byzantine can start only 200,000 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 200,000 units started at the molding operation, 20,000 defec tive units (10%) are produced. The cost of a defective unit, based on total (fixed and variable) manufacturing costs incurred up to the molding operation, equals $20 per unit, as follows: Direct materials (variable) $10 per unitDirect manufacturing labor, setup labor, and materials-handling labor (variable) 2 per unitEquipment, rent, and other allocated overhead, including inspection and testing costs on scrapped parts (fixed) 8 per unitTotal $ 20 per unit Byzantine​'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 $ 3 $3 per lamp in the molding department.1. Should Crimson use the new material? Show your calculations. 2. What nonfinancial and qualitative factors should Crimson consider in making the decision?