The Axle Division of LaBate Company Makes and Sells Only

question 88

Multiple Choice

The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow:
-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
• B) 16,750
• C) 18,250
• D) 19,500

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Definitions:

Tangible Resources

Physical and material assets owned by a business, such as buildings, machinery, and inventory.

Intangible Resources

Non-physical assets owned by a business, such as intellectual property, brand reputation, and customer relationships.

Substitutable Resources

Resources in a firm that can be replaced by other resources to perform the same function, affecting competitive advantage and strategic planning.

Value Chain

A series of activities performed by a company to deliver a valuable product or service to the market.