Solution-What should be the price per kit

What should be the price per kit

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Reference no: EM132746806

Problem 1: During 2019, MISTY lab supplied hospitals with a comprehensive diagnostic kit for P120. At a volume of 80,000 kits, MISTY had fixed costs of P1,000,000 and operating income before income taxes of P200,000. Because of an adverse legal decision, MISTY's 2020 liability insurance increased by P1,200,000 over 2019. Assuming the volume and other costs are unchanged, what should be the price per kit in 2020 if MISTY is to make the same P200,000 income before income taxes?

Option 1: P120

Option 2: P135

Option 3: P150

Option 4: P240

Option 5: Answer Not given

Reference no: EM132746806

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What should be the price per kit

Reference no: EM132746806

Reference no: EM132746806

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