need help During 2004, Thor Lab supplied hospitals with a comprehensive diagnostickit for $120. At a volume of 80,000 kits, Thor had fixed costs of $1,000,000and a profit before income taxes of $200,000. Due to an adverse legaldecision, Thor's 2005 liability insurance increased by $1,200,000 over 2004.Assuming the volume and other costs are unchanged, what should the 2005price 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

To determine the price Thor Lab should charge per diagnostic kit in 2005 to achieve the same…

Answered: During 2004, Thor Lab supplied…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 frames in 800 shipments in 2022, What is the Kristine's operating income for 2022?

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