The Axle Division of LaBate Company Makes and Sells Only

question 115

Multiple Choice

The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow:
$\begin{array}{|l|r|}\hline \text { Unit Selling Price } & \$ 50 \\\hline \text { Unit Variable Cost } & \$ 30 \\\hline \text { Total Fixed Costs } & \$ 200,000 \\\hline \text { Average Operating Assets } & \$ 750,000 \\\hline \text { Minimum Required Rate of Return } & 12 \% \\\hline\end{array}$
-If Axle sells 16,000 units per year,what would be the return on investment?

• A) 12%.
• B) 15%.
• C) 16%.
• D) 18%.

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Definitions:

LDLs

Low-density lipoproteins, often referred to as "bad" cholesterol, involved in the transport of cholesterol to cells.

Simple Diffusion

The movement of molecules from an area of higher concentration to an area of lower concentration without the need for energy.

Protein Digestion

is the process by which proteins are broken down into their constituent amino acids or small peptides, which can then be absorbed by the body.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life, with both essential and non-essential variants for human health.