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Ann [662]
3 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]3 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

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Based on the information provided in the question, the effective monetary multiplier for the banking system will be calculated as:

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= 1/0.25

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3 years ago
Which kind of stock is most affected by changes in risk aversion? (In other words, which stocks see the biggest change in their
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High beta stocks

Explanation:

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3 years ago
Using the following information, determine the location quotient for Motor City: employment in motor vehicle manufacturing withi
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15.7

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3 years ago
The _____ ensures the safety and quality of foods sold across state lines with the exception of red meat, poultry, and egg produ
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Answer:

The correct word for the blank space is: Food and Drug Administration.

Explanation:

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On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,00
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Answer:

The cost balance on 31 December 2018 is $518,000 while that of accumulated depreciation is $126,400

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= $126,400

3 0
2 years ago
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