Question: could you solve this one with the same numbers 4. (12.5) Bovay Medical Labs is evaluating the alternatives of complete and partial in-house diabetes and
4. (12.5) Bovay Medical Labs is evaluating the alternatives of complete and partial in-house diabetes and associated blood sugar testing labs, instead of outsourcing samples to an independent laboratory for analysis. The alternatives and associated costs are as follows: Complete lab inhouse: If the inhouse lab is completely equipped, the initial cost will be $50,000. A part-time technician will be employed at an annual equivalent salary of $26,000. Cost of chemicals and supplies is estimated at $10 per sample. Partial lab inhouse: The lab can be partially equipped at an initial cost of $35,000. The part-time technician will have an annual equivalent salary of $10,000. The cost of inhouse sample analysis will be only $3 per sample. However, since some tests cannot be conducted inhouse, outside testing will be required at an average cost of $40 per sample for all samples. Complete outsourcing: The cost averages $120 per sample analyzed. Any laboratory equipment purchased will have a life of 6 years. If the MARR is 10% per year, determine the number of samples that must be tested each year to justify (a) the complete lab and (b) the partial lab (C) If Bovay expects to test 300 samples per year, which of the three options is the best economically
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