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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:
 Unit Selling Price $50 Unit Variable Cost $30 Total Fixed Costs $200,000 Average Operating Assets $750,000 Minimum Required Rate of Return 12%\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?


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