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.

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