Thermal Mugs, Inc., manufactures various types of leak-proof personal drink carriers. Thermal's T6 container, its most insulated carrier, maintains the temperature of the liquid inside for 6 hours. Thermal has designed a new lid for the T6 carrier that allows for easier drinking and pouring. The cost to produce the new lid is: Direct materials $1 Direct labor $5 Avoidable fixed overhead per unit $7 Variable fixed overhead per unit 6 Plato Plastics has approached Thermal and offered to produce the 140,000 lids Thermal will require for current production levels of the T6 carrier, at a unit price of $15 each. What are the total relevant costs for Thermal Mugs? Your Answer: Answer Suppose the donut division of Scrumptious Sweets is considering acquiring new machinery to speed up the production of donuts and make the donuts more uniform in shape and size. The cost of the machine is $2,000,000, and it is expected to generate a profit of $600,000. Scrumptious has a corporate policy of a required minimum rate of return on projects of 20%. What is residual income? (Enter the answer as a whole number. Do not use commas or periods in your answer. If your answer is 150,000, you would enter 150000) A