CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.2, Chapter 7 Allied Labor
ID: 2819513 • Letter: C
Question
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 uried). DATA A ! Syringe Blood Vial Forms reagents Bandage Breakage/loss $4.00 1.00 0.25 1.00 0.20 0.10 $4.00 1.00 0.25 0.80 0.20 0.10 S4.00 1.00 0.25 1.50 0.20 0.10 Using the above information, complete the following table and answer the questions below: # Supplies Combined suppl needed for TESTXcosts for TEST Supplies 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?Explanation / Answer
Given that- Supplies A B C # supplies needed for test x Combined supplies cost for text X Working Syringe 3 3 3 1 $ 3.00 Blood vial 0.5 0.5 0.5 2 $ 1.00 =2*0.5 Forms 0.15 0.15 0.15 1 $ 0.15 Reagents 0.8 0.6 1.2 3 $ 2.60 =0.8+0.6+1.2 Bandage 0.1 0.1 0.1 1 $ 0.10 Breakage/loss 0.05 0.05 0.05 1 $ 0.05 Total 4.6 4.4 5 9 $ 6.90 answer a) Price of combined test X = $ 6.90 answer b) Price needed to get $10 contribution margin = cost per test + $10 $ 16.90 =6.9+10