Question: 1 / 2 100% Week 4 - Assignment 2: Determine Service- Line Break-Even and Profitability Instructions NCU AMC's lab service is considering adding a specialty

1 / 2 100% Week 4 - Assignment 2: Determine Service-

1 / 2 100% Week 4 - Assignment 2: Determine Service- Line Break-Even and Profitability Instructions NCU AMC's lab service is considering adding a specialty test to its lab outreach options. The following data is available to assist with the pricing of the new test: Variable cost per test $3 Annual direct fixed costs $125,000 Annual overhead allocation $10,000 Expected annual utilization (number of tests) 25,000 1. What per-test price is required for the service to break even? 2. What per-test price is required for the service to earn a $23,000 profit? Length: One Excel Workbook

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