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:

Conflict Theory

A sociological perspective emphasizing the role of power disparities and economic conflict in creating and perpetuating social inequality.

Macro-level Focus

An approach in sociological study that examines large-scale social processes, such as social institutions and system-wide social patterns.

Social Structures

Refers to the complex framework of societal institutions (like the legal system, the economy, education, and the family) and the social practices (rituals, social norms, and community life) that make up a society and organize and limit the actions of its members.

Social Institutions

Established systems and structures within a society that dictate certain patterns of behavior and relationships, such as family, education, and religion.