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Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests that they perform
Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests that they perform require the use of a specialized machine that can supply 14,000 hours per year. Information on the four lab tests follows:
Test A | Test B | Test C | Test D | |
Charging rate | $65 | $51 | $48 | $32 |
Variable cost | $25 | $18 | $13 | $8 |
Machine hours | 3 | 2 | 1 | 0.5 |
What is the contribution margin per hour of machine time for Test B?
a.$16.25
b.$33
c.$20.50
d.$18
e.$16.50
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