Follow the instructions to work through the calculation of cost per billable test for a drug screen composed of five independently measurable assays, using the following information: . Instrument was purchased for $116,000 and is depreciated over a period of five years The service contract for the instrument is $9,212 per year The laboratory reports 539 drug screens per month The reagent costs are as follows: Reagent . . . Cost per Kit $135 $130 $130 Cocaine $145 Cannabinoids $115 From the budget report you have spent the following: Medical supplies Amphetamines Barbiturates Benzodiazepines Annual Usage 128 kits 125 kits 133 kits 129 kits 146 kits Non-medical supplies Other direct expenses Travel and education Salaries Total billable tests for the year = 789, 352 $205,874 $51,722 $47,892 $22,171 $1,892,364 Calculate the annual reagent cost by multiplying the cost per kit by annual usage, adding up the totals, and dividing by the number of billable drug screens per year.