The Axle Division of LaBate Company Makes and Sells Only

question 25

Multiple Choice

The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow:
$\begin{array}{|l|r|}\hline \text { Unit Selling Price } & \$ 50 \\\hline \text { Unit Variable Cost } & \$ 30 \\\hline \text { Total Fixed Costs } & \$ 200,000 \\\hline \text { Average Operating Assets } & \$ 750,000 \\\hline \text { Minimum Required Rate of Return } & 12 \% \\\hline\end{array}$
-Suppose the manager of Axle desires an annual residual income of $45,000.In order to achieve this,Axle should sell how many units per year?

• A) 14,500 units.
• B) 16,750 units.
• C) 18,250 units.
• D) 19,500 units.

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Definitions:

Medulla

A part of the brainstem vital for autonomic functions like breathing, heart rate, and blood pressure regulation.

Fearlessness

The absence of fear or the ability to confront fear or danger without being overtaken by it.

Amygdala

The amygdala is a section of the brain that is responsible for detecting fear and preparing for emergency events. It plays a key role in the processing of emotions.

Cerebellum

A region of the brain at the back of the skull in vertebrates, responsible for coordinated movement and balance.