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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$50Unit Variable
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$50Unit Variable Cost$30Total Fixed Costs$200,000Average Operating Assets$750,000Minimum Required Rate of Return12%
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?
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