Question 17 3.33 pts a Radiant Enterprises manufactures lamps. Radiant normally sells its lamps for $49 per unit. A foreign company has offered to buy 5,000 units at a reduced price of $45 per unit. The normal variable cost is $37 per unit, which includes direct labor costs of $5 per unit. Radiant would have to produce the special order on an overtime shift, which would increase the direct labor costs to $7.50 per unit. The special order would not impact Radiant's fixed costs. However, if Radiant accepts the special order, it will also incur $8,000 in additional, one-time costs in connection with the order. If Radiant accepts the special order, what would be the incremental effect on Radiant's operating income? Increase by $19.500 Increase by $17.000 Increase by $22.000 Decrease by $24,500 Question 18 3.33 pts Global Enterprises has four geographic divisions. Here are data regarding the European Division's current-year results: Sales Tumover Margin Residual income $750,000 3.125 6.0% $15.000 What is Global's minimum required rate of return? Round to one decimal point. 6.89% 12.5% 15.7% 30.4% Question 19 3.33 pts Shade, Inc. manufactures lamps. Shade currently manufactures the switches used in its lamps but is considering whether to purchase the switches from an outside supplier. Which of the following sets of factors are relevant to Shade's decision to make the switches in-house versus purchasing the switches from an outside supplier? its lamps Fixed cests avoided Selling price Per-unit purchase if buy switches from Shade charges for price if buy switches supplier from supplier Yes Yes Yes No No Yes Yes No No Na Yes No Profitable use of freed-up capacity i buy switches from supplier Yes Yes No Yes No Yes Yes 3363 Yes Choice A Choice B Choice Choice D Choice E Question 20 3.33 pts Mining Corporation is considering an investment in a project that will have a two- year life. The project will provide an 8% internal rate of return and is expected to have a $40,000 cash inflow in the first year and a $50,000 cash inlow in the second year. What is the required initial investment for this project? $79,890 $80,560 $81.240 $82,800