The Axle Division of LaBate Company Makes and Sells Only

question 161

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 a return on investment of 22%.In order to achieve this goal,Axle must 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:

Mortality Data

Information and statistics on the incidence of death within a specified population.

Importance Gap

The discrepancy between the expected importance of an attribute or factor and its perceived performance, usually in the context of service or product evaluation.

Modern Technology

Contemporary tools, devices, and techniques used to facilitate tasks and solve problems in various domains, including communication, transportation, and healthcare.

Daily Basis

A frequency or routine in which activities or tasks are conducted every day.