During 2012,Thor Lab Supplied Hospitals with a Comprehensive Diagnostic Kit

question 33

Multiple Choice

During 2012,Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120.At a volume of 80,000 kits,Thor had fixed costs of $1,000,000 and a profit before income taxes of $200,000.Due to an adverse legal decision,Thor's 2013 liability insurance increased by $1,200,000 over 2012.Assuming the volume and other costs are unchanged,what should the 2013 price be if Thor 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:

Sleep Diary

A self-reported log used to track sleep patterns, including duration, quality, and disturbances, often utilizedin diagnosing sleep disorders.

Second Trimester

The period of pregnancy between the 13th and 26th weeks, often associated with a decrease in morning sickness and a more visible baby bump.

Short Of Breath

Experiencing difficulty in breathing or feeling unable to get enough air, often indicating a medical condition.

Third Trimester

The final phase of pregnancy, typically spanning from week 28 until birth, marked by significant growth and development of the fetus.