Management Workshop Break - Even Analysis Project In 1993 the state entacted a law which requires that all children have a lead level test before entering the school system. This test had previously been sent out to reference laboratory due to its low volume. Given the information below, please calculate the break-even volume and cost per test. Then provide your recommendations regarding the feasibility of performing the test in- house. Procedure Count/Revenue Annual projected volume has been 148 tests/year but recently has increased to 70/month with future projections of 100/month. Revenue per lead level = $25. Current reference lab costs for performing this procedure is $13.31/test. Instrument Cost Lead analyzer $15,000 - depreciated over 5 years Service contract Under warranty for year 1, $1200/year 2 - 5 Electrode replacement $300/year Reagent Cost Control Materials $170/year - based on 3 runs/week and 2 control/run Proficiency testing materials $333/year Reagetns $3.75/test Personnel Cost The staffing is such that this test could be absorbed without additional staff. But, for the purpose of determining cost/test, assume each test will take ten minutes of technologist time and the average hourly salary is $16.00