. . . . Case 1 Follow the instructions to work through the calculation of cost per billable test for a drug scree composed of five independently measurable assays, using the following information: years Instrument was purchased for $116,000 and is depreciated over a period of five The service contract for the instrument is $9,212 per year The laboratory reports 539 drug screens per month I The reagent costs are as follows: Reagent Cost per Kit Annual Usage Amphetamines $135 128 kits Barbiturates $130 125 kits Benzodiazepines $130 133 kits Cocaine $145 129 kits Cannabinoids 146 kits From the budget report you have spent the following: Medical supplies $205,874 Non-medical supplies $51,722 $47,892 Travel and education $22,171 Salaries Total billable tests for the year = 789, 352 $1,892,364 $115 . Other direct expenses . 1. Calculate the equipment cost over five years (same amount of time as the depreciation period) by dividing the cost of the instrument by the number of drug screens that would be performed over five years (assume that the number of screens per month will not change). 2. Calculate the cost of the service contract by dividing the contract price by the annual usage WORDS De