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#8. Allied Laboratories is combing some of its most common tests into one-price packages. One such package will contain three tests that have the following

#8. Allied Laboratories is combing some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs:

Test A Test B Test C
Disposable Syringe $3.00 $3.00 $3.00
Blood Vial $0.50 $0.50 $0.50
Forms $0.15 $0.15 $0.15
Reagents $0.80 $0.60 $1.20
Sterile Bandages $0.10 $0.10 $0.10
Breakage/losses $0.05 $0.05 $0.05

When the tests are combined, only one syringe, form, and sterile bandage will be used. Furthermore, only one charge for breakage/losses will apply. Two blood vials are required, and reagent costs will remain the same (reagents from all three tests are required).

What price must be charge to achieve a contribution margin of $10?

Choice: $10.25

Choice: $15.70

Choice: $16.90

Choice: $19.80

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