During 2020, Seth Britain Lab Supplied Hospitals with a Comprehensive

question 12

Multiple Choice

During 2020, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Seth had fixed costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Seth's 2021 liability insurance increased by $1,200,000 over 2020. Assuming the volume and other costs are unchanged, what should the 2021 price be if Seth is to make the same $200,000 profit before income taxes? (CPA adapted)

• A) $122.50.
• B) $135.00.
• C) $152.50.
• D) $240.00.

---

Definitions:

Low Platelets

A condition known as thrombocytopenia, where the blood has an abnormally low count of platelets, affecting clotting.

Epigastric Pain

Discomfort or pain located in the upper abdominal region, particularly between the chest and the belly button.

Gestational Trophoblastic Disease

A group of rare diseases in which abnormal trophoblast cells grow inside the uterus after conception.

Polyhydramnios

An excessive accumulation of amniotic fluid during pregnancy, which can lead to complications for both the mother and fetus.