Case Study: You have been recently promoted to Departmental Manager after you boss, Cole Kutz, retired. The CFO would like you to provide him with the cost of a new test that the organization would like to market in your area, a titanium scan. He places a pile of data on your desk, smiles, and sets up a meeting tomorrow to go over the results. Below is what you find in the pile:

Average salary for your staff	$28/hour
Benefits for staff	35% of salary
Number of new tests anticipated/month	300
Rent for your departments space	$500/mo
Technical supply cost for new test	$10/test
Utilities for department/year	$500
Report supplies	$0.10 each
salary	$55,000/year
FICA taxes paid/ employee	12.7%
# controls needed/day	12
# calibrators needed/day	4
Test repeats anticipated	3/week
salary	$200,000/yr.
Cost of calibrators	$6.00/day
Total test performed by the lab	500,000/yr.
Sample collection supplies	$0.15 each
Cost of controls	$4.50/day
# minutes to run new test	15
Information system support	$10,000/year

Questions:

1. Calculations for Variable costs/reportable scan?

2. Calculations for Labor costs/reportable scan ?

3. Total cost/reportable titanium scan result: $