Question: During 2016, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $150. At a volume of 75,000 kits, Seth had fixed costs of

During 2016, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $150. At a volume of 75,000 kits, Seth had fixed costs of $1,070,000 and a profit before income taxes of $505,000. Due to an adverse legal decision, Seth's 2017 liability insurance increased by $1,575,000 over 2016. Assuming the volume and other costs are unchanged, what should the 2017 price be if Seth is to make the same $505,000 profit before income taxes? (CPA adapted) rev: 10_18_2016_QC_CS-66336

$156.70.

$171.00.

$198.70.

$300.00.

Please show all work.

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