During 2016, Seth Britain Lab supplied hospitals with a comprehensive diagnostic

Question

During 2016, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $150. At a volume of 90,000 kits, Seth had fixed costs of $1,210,000 and a profit before income taxes of $140,000. Due to an adverse legal decision, Seth's 2017 liability insurance increased by $1,350,000 over 2016. Assuming the volume and other costs are unchanged, what should the 2017 price be if Seth is to make the same $140,000 profit before income taxes? (CPA adapted)

$151.60.

$165.00.

$181.60.

$300.00.

Explanation / Answer

what should the 2017 price be if Seth is to make the same $140,000 profit before income taxes

=150+(1350000/90000)

=165.00

the above is answer..

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