During 2011, Thor Lab supplied hospitals with a comprehensive diagnostic kit for 120.

A t

a v

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u m

e o

f 80

, 000 k

i t

s

, T h

o r

h a

d f

i x

e d

c o

s t

s o

f 1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2012 liability insurance increased by 1

, 200

, 000 o

v e

r 2011.

A s

s u

m i

n g

t h

e v

o l

u m

e a

n d

o t

h e

r c

o s

t s

a r

e u

n c

h a

n g

e d

, w h

a t

s h

o u

l d

t h

e 2012 p

r i

c e

b e

i f

T h

o r

i s

t o

m a

k e

t h

e s

a m

e 200,000 profit before income taxes?

a. $120.00

b. $135.00

c. $150.00

d. $240.00