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During 2020, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $125. At a volume of 90,000 kits, Seth had fixed costs of
During 2020, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $125. At a volume of 90,000 kits, Seth had fixed costs of $1,140,000 and a profit before income taxes of $300,000. Due to an adverse legal decision, Seth's 2021 liability insurance increased by $1,440,000 over 2020. Assuming the volume and other costs are unchanged, what should the 2021 price be if Seth is to make the same $300,000 profit before income taxes? (CPA adapted) Multiple Choice $128.30. $141.00. O $160.30. X $250.00
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