Question
The following data apply to the provision pf psychological testing services: Sales price per unit (1 unit = 1 test + feedback to client) $1,000
The following data apply to the provision pf psychological testing services:
Sales price per unit (1 unit = 1 test + feedback to client) $1,000
Fixed costs (per month):
Selling and administration 80,000
Production overhead (e.g. rent of testing facilities) ..140,000
Variable costs (per test):
Labor for oversight and feedback 300
Outsourced test analysis 50
Materials used in testing 10
Production overhead 25
Selling and administration (e.g. scheduling and billing) ... 50
Number of tests per month . 2,000
If one unit is one test, give the amount of the contribution margin per unit:
Group of answer choices
$565/test.
$523/test.
$487/test.
$467/test.
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