The writer is very fast, professional and responded to the review request fast also. Thank you.
Allied Laboratories is combining some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs:
Test A
Test B
Test C
Disposable syringe
$3.00
$3.00
$3.00
Blood vial
0.50
0.50
0.50
Forms
0.15
0.15
0.15
Reagents
0.80
0.60
1.20
Sterile bandage
0.10
0.10
0.10
Breakage/losses
0.05
0.05
0.05
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 required).
(a) As a starting point, I need price of the combined test assuming marginal cost pricing.
(b) Assume that Allied wants a contribution margin of $10 per test. Need the price set to achieve this goal.
(c) Allied estimates that 2,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs total $40,000. Need price to cover full costs? Need price to produce a profit of $20,000 on the combined tests.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more