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