Question
1. Given the information below, calculate the cost per billable test (the test is Drug Screen) using the information below. Which expense adds the most
1. Given the information below, calculate the cost per billable test (the test is Drug Screen) using the information below. Which expense adds the most to the cost of a drug screen?
A. The Drug Screen test offered at your lab is composed of 5 independently measured assays: amphetamines, barbiturates, cannabinoids, cocaine, and benzodiazepines
B. The instrument used for the assays was purchased for $116,000. The instrument is only used for drug screens
C. The lab does 579 drug screens/month, but 40 of them were not billable due to repeats, controls etc.
D. The service contract for the instrument for the drug screens is $9212.
Test for: | Cost/kit | Annual usage (kits) | Annual Cost |
amphetamines | $135 | 128 | $17,280 |
barbiturates | $130 | 125 | $16, 250 |
cannabinoids | $130 | 133 | $17,290 |
cocaine | $145 | 129 | $18,705 |
benzodiazepines | $115 | 146 | $16,790 |
total |
|
|
|
The reagent costs for the year are as follows:
E. Other items from the budget report:
i. Medical supplies needed/year: $205,874
ii. Non-medical supplies needed/year: $51,722
iii. Other direct expenses: $47,892
iv. Travel and education: $22,171
v. Salaries: $1,892,364
f. Total billable tests/year is 789,352
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