Case 1 Follow the instructions to work through the calculation of cost per billable test for a drug screen composed of five independently measurable assays, using the following information: Instrument was purchased for $116,000 and is depreciated over a period of five years The service contract for the instrument is $9,212 per year The laboratory reports 539 drug screens per month 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 $115 146 kits . From the budget report you have spent the following: Medical supplies $205,874 Non-medical supplies $51,722 Other direct expenses $47,892 Travel and education $22,171 Salaries $1,892,364 . Total billable tests for the year = 789, 352 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)