Reference: 12-03
the Axle Division of LaBate Company Makes and Sells

question 72

Multiple Choice

Reference: 12-03
The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow: $$\begin{array} { | l | l | } \hline \text { Unit selling price } & \$ 50 \\\hline \text { Unit variable cost } & \$ 30 \\\hline \text { Total fixed costs } & \$ 200,000 \\\hline \text { Average operating assets } & \$ 750,000 \\\hline \text { Minimum required rate of return } & 12 \% \\\hline\end{array}$$
-If the Axle Division sells 16,000 units per year, the return on investment should be

• A)12%.
• B)15%.
• C)18%.
• D)16%.

Compute sales revenue and expenses impacting net income.

Analyze changes in inventory accounts and their effects on cost of goods sold and manufactured.

Grasp the relationship between direct materials, work in process, and finished goods inventories in the accounting cycle.

Understand the principles and methods of horizontal and vertical financial analysis.

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Definitions:

Discipline Strategy

Approaches and methods used by parents, teachers, and caregivers to teach children about rules, expectations, and appropriate behavior.

Time-Out

A disciplinary technique in which a person is separated from other people and activities for a specified time.

Bullying Aggression

Unprovoked, repeated physical or verbal attack, especially on victims who are unlikely to defend themselves.

Gender Differences

Variations in characteristics, behaviors, physical traits, and social roles typically associated with being male or female.