Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.2, Chapter 7 Allied Laboratories is combining some of its most commom tests into a bundled, one-price

CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.2, Chapter 7 Allied Laboratories is combining some of its most commom tests into a bundled, one-price package called TEST X that contains three tests (A, B, and C) with the variable costs as stated below.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 requried). DATA: A B C Syringe $3.50 $3.50 $3.50 Blood Vial 1.25 1.25 1.25 Forms 0.25 0.25 0.25 reagents 2.00 0.85 1.25 Bandage 0.15 0.15 0.15 Breakage/loss 0.10 0.10 0.10 Using the above information, complete the following table and answer the questions below: Supplies A B C # Supplies needed for TEST X Combined supply costs for TEST X Syringe Blood Vial Forms reagents Bandage Breakage/loss a. What is the price of the combined test? a. b. What price is needed to obtain a $10 b. contribution margin?

Show work.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

6th Canadian edition

1259024962, 978-1259024962

Students also viewed these Finance questions