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:

Use the information provided above to answer the following questions:

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).

Assuming marginal cost pricing, what is the cost of the combined test?

Choice: $3.00

Choice: $4.50

Choice: $5.30

Choice: $6.90

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 charged to achieve a contribution margin of $10?

Choice: $10.25

Choice: $15.70

Choice: $16.90

Choice: $19.80

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). Allied estimates that 2,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs totals $40,000.

What price must be set to cover the total overhead costs at the projected volume. What price must be charged to cover full costs?

Choice: $26.90

Choice: $31.50

Choice: $39.40

Choice: $43.75

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). Allied estimates that 2,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs totals $40,000. What price must be set to cover the total overhead costs at the projected volume?

What price must be charged to cover full costs plus a $20,000 profit?

Choice: $23.54

Choice: $32.45

Choice: $33.80

Choice: $36.90

Test A Test B Test C Disposable Syringe $3.00 $3.00 $3.00 $0.50 $0.15 $0.60 $0.10 $0.05 $0.50 $0.15 $1.20 $0.10 $0.05 Blood Vial $0.50 Forms $0.15 Reagents Sterile Bandages Breakage/losses S0.80 $0.10 S0.05