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#9. 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

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#9. 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 $4.00 Disposable Syringe Blood Vial $4.00 $4.00 $0.50 $0.50 $0.50 Forms $0.15 $0.15 $0.15 Reagents $0.80 $0.60 $1.20 Sterile Bandages $0.20 $0.20 $0.20 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. Three blood vials are required all three reagents are needed.. Allied estimates that 4,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs totals $150,000. Allied would also like to have a profit margin of $25,000 (before tax). What price must be set to cover the total overhead costs and profit margin at the projected volume. Choice: $22.54 Choice: $31.00 Choice: $45.50 Choice: $52.25

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