1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ann [662]
2 years ago
7

During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixe

d costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004. Assuming the volume and other costs are unchanged, what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
a. $120.00
b. $135.00
c. $150.00
d. $240.00
Business
1 answer:
Diano4ka-milaya [45]2 years ago
6 0

Answer:

d. $240.00

Explanation:

Calculation to determine what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?

2004 CM% = 12.5% ($15/$120)

2005 CM = $2,400,000 ($1,000,000 + $200,000)

2005 CM per unit = $2,400,000/80,000 units

2005 CM per unit= $30 CM per unit;

2005 selling price per unit = $30/.125

2005 selling price per unit= $240

Therefore what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes is $240

You might be interested in
Why should games be forbidden on school property
PIT_PIT [208]

Answer:

Explanation:

Games on school property redirect the attention of the students to the games, instead of learning. They cause further disobedience and will often be snuck out to play during class. The students will be distracted and will not learn anything from the time spent in school.

6 0
3 years ago
Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures h
a_sh-v [17]

The annual premium for Zack's house would be <u>cheaper</u> through <em>AAA </em>than <em>Thompson’s Insurance. </em>

<h3>How to calculate the annual premium of two companies? </h3>

AAA company is offering $0.36 per $100 of value.

Thompson company is offering $3.63 per $1,000 of value;

\frac{3. 63 }{1000} \\=\frac{0.363}{100}

Hence, <u>0.363</u> is higher than 0.36, which makes <em>AAA company </em>more beneficial for insurance.

Learn more about premium calculation here:

brainly.com/question/2644714

4 0
2 years ago
The demand for a new computer game can be modeled by p (x )equals 48.5 minus 5 ln x​, for 0less than or equalsxless than or equa
Hoochie [10]

Answer:

a. R(x) = 48.5x - x5inx

b. R'(x) = 43.5 - 5lnx

c. The correct option is d. Yes, because the revenue will be maximized when R'(x)=0. The price to the consumer would be <u>$5</u>.

Explanation:

Given:

p(x) = 48.5 - 5lnx, for 0 ≤ x ≤ 800 ............. (1)

a. Find R(x).

R (x) = x * p (x) ........................ (2)

Substitute equation (1) into (2), we have:

R(x) = x(48.5 - 5lnx)

R(x) = 48.5x - x5inx .............................. (3)

Equation (1) is the R(x) required to be found.

b. Find the marginal revenue, R'(x)

The derivative of equation (3) is taken to obtain R'(x) as follows:

R'(x) = 48.5 - 5lnx - x5(1/x)

R'(x) = 48.5 - 5lnx - 5

R'(x) = 48.5 - 5 - 5lnx

R'(x) = 43.5 - 5lnx ...................... (4)

Equation (4) is the marginal revenue, R'(x), required to found.

c. Is there any price at which revenue will be maximized? Why or why not? Choose the correct answer below.

Profit is maximized when R'(x) = 0

Equating equation (4) to 0 and solve for x, we have:

43.5 - 5lnx = 0

43.5 = 5lnx

5lnx = 43.5

lnx = 43.5 / 5

x = e^(43.5 / 5)

x = 6,002.91

Substituting x = 6,002.91 into equation (1), we have:

p(x) = 48.5 - (5 * ln(6,002.91))

p(x) = 48.5 - (5 * 8.70)

p(x) = 48.5 - 43.5

p(x) = $5

Therefore, the correct option is d. Yes, because the revenue will be maximized when R'(x)=0. The price to the consumer would be <u>$5</u>.

5 0
2 years ago
What is the present value of $1,400 per year, at a discount rate of 11 percent, if the first payment is received 9 years from no
olga nikolaevna [1]
For 9 years
$547.295

for 25 years
$103.051
5 0
3 years ago
During 2017, jackson company purchased 17,000 shares of monticello corp. Common stock for $382,500 as a passive interest investm
jekas [21]

Answer:

Explanation:

Other comprehensive income for 2017

The fair value of these shares - Common stock

=  $373,150 -  $382,500

= -$9,350

Jackson sold all of the monticello stock for $27.25 per share:

$27.25*17,000 = $463,250

Commission : ($15,000)

Net proceeds: $448,250

Acquisition     ($382,500 )

Gain on sale    $65,750

The joural entry is:

Cash                  $448,250

  • OTI (loss)                    $9,350
  • Holmes shares         $373,150
  • Gain on sale             $65,750

               

5 0
3 years ago
Other questions:
  • Jan is attending college and studying to be an investment broker. To improve her chances of employment following​ college, she h
    10·1 answer
  • Cheyenne has a home insured for $300,000. It would cost $320,000 to rebuild her home. If she has home insurance that provides pe
    11·1 answer
  • Question 13 of 20 : Select the best answer for the question. 13. The document a caterer uses to stipulate the terms, conditions,
    8·1 answer
  • When brand equity is measured using stock valuation with an estimate of the portion of the value allocated to brand equity and n
    6·2 answers
  • A tractor to help with farm work would be an example of what kind of economic resource?
    10·1 answer
  • Lindsey’s college will cost her a total of $6,000 a year for the next 3 years. She is also foregoing making $26,000 a year at th
    9·2 answers
  • Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of $1,038. The
    9·1 answer
  • Which of the following is not true about a loan discount point? a. A point is purchased at the time of closing. b. A point is pu
    8·2 answers
  • Janice, a citizen of Nevada, was injured by a defective product manufactured by Hot Plates, Inc., a company incorporated in Cali
    13·1 answer
  • Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize and explain your findings
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!