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
Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities
algol [13]
B I think sorry if wrong :/
8 0
2 years ago
The difference between a credit card and a debit card is that when you use a credit card, the amount of money you spend is autom
Nastasia [14]
False, a credit card doesn’t deduct from your checking account nor is it linked to your checking account only a debit card deducts from your checking account.
3 0
3 years ago
Read 2 more answers
The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $30 First
irakobra [83]

Answer:

Fifo Ending Inventory = $ 690

Explanation:

The first in first out method implies that only the units at the end are left out in the ending inventory.                

Fifo Ending Inventory = $ 690

10 units from third purchase at $ 35= $ 350

10 units from second purchase at $ 34= $ 340

Total 20 units FIFo method = $ 690

Working

         

                                                                  Total Cost

Beginning inventory        10 units at $30           $ 300

First purchase                 25 units at $32            $ 800

Second purchase            30 units at $34            $ 1020

Third purchase                10 units at $35            $ 350

6 0
3 years ago
On March 1, 2018, Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral
N76 [4]

Answer:

B) $20,697.

Explanation:

For computing the accretion expense, first we have to determine the present value which is shown below:

Present value would be

= Annual cash flows × PVIF factor for five years at 10%

where,

Annual cash flows would be

= Probability × cash outflows + Probability × cash outflows + Probability × cash outflows

= 25% × $300,000 + 50% × $400,000 + 25% × $500,000

= $75,000 + $200,000 + $125,000

= $400,000

And, the PVIF would be 0.62092. Refer to the PVIF table

So, the present value would be

= $400,000 ×  0.62092

= $248,368

Now the accretion expense would be

= $248,368 × 10% × 10 months ÷ 12 months

= $20,697

The 10 months are computed from March 1 to December 31 and we assume the books are closed on December 31

4 0
3 years ago
You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired
inn [45]

Answer:

The answer to this question is b. Yours will be positive and your roommate's would be negative.

Explanation:

Income elasticity of demand is the degree of responsiveness of demand to changes in income. In other words, it measures how changes in income of consumers will affect the quantity of commodities demanded by such consumers.

An income elasticity of demand can be positive or negative.

It is positive, when an increase in income leads to an increase in the quantity demanded by the customer. However it is referred to as negative when an increase in income leads to decrease in the quantity demanded by the consumer.    

In  the question above, it can be seen that the increase in income of the first person brought about increase in the commodity demanded thereby making his income elasticity of demand positive. one the other hand, the increase in the income of his roommate, brought about decrease in his demand which translate to the fact that his income elasticity of demand would be negative.

Hence the answer given.

4 0
3 years ago
Other questions:
  • Psychological research involves studying a sample of participants in order to draw conclusions about the population from which t
    6·1 answer
  • The cost of land does not include:
    6·1 answer
  • New batteries are needed to power our electronic devices—our cell phones, tablets, and computers—and that market is exploding. R
    8·1 answer
  • The shoe department accounts for 2,700 square feet in a store and achieved sales per square foot of $800. Calculate the total sa
    7·1 answer
  • A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale wi
    11·1 answer
  • You sold a car and accepted a note with the following cash flow stream as your payment. The effective price you received for the
    14·1 answer
  • QUESTION 7 of 10: What aspect of your advertising is it vital to measure?
    10·1 answer
  • When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the
    12·1 answer
  • What are you paying for when you lease a car? A.the purchase price of the car
    9·1 answer
  • A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!