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Determine axle must sell how many units per year

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Reference no: EM132527650

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 var cost... $30

Total fixed costs... $200,000

Average operating assets... 750,000

Minimum required rate of return... 12%

Question 1: If Axle sells 16,000 units per year, the return on investment should be?

Question 2: 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?

Reference no: EM132527650

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