The Axle Division of LaBate Company Makes and Sells Only

question 37

Multiple Choice

The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow:
-If Axle sells 15,000 units per year, the residual income should be:

• A) $30,000
• B) $100,000
• C) $50,000
• D) $10,000

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Definitions:

Prejudice

Negative feelings, opinions, and beliefs associated with a stereotype.

Fundamental Attribution Error

A common cognitive bias where an individual tends to attribute others' behaviors to their character or personality while underestimating situational factors.

Actor/Observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to their personality.

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.