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.

Acknowledge the significance of intellectual property protection in the U.S. Constitution and its recognition at a national level.

Recognize the patent application requirements and the scope of patent protection.

Differentiate between legal and illegal uses of trademarks and copyrights.

Be aware of the limitations and challenges in protecting intellectual property in the digital environment.

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Definitions:

Production Order Quantity Model

An economic order quantity technique applied to production orders.

Production Departments

Divisions within a manufacturing or production company responsible for the actual production of goods or services.

Demand Rate

refers to the speed at which customers purchase or demand a product or service over a given period of time.

Production Order Quantity Model

An inventory management technique that determines the optimal quantity of products to order or produce, minimizing total inventory costs.