Inquest Diagnostics lab department provides three tests A, B, and C. Key statistics for each test are provided in the attached spreadsheet in the Inquest tab, including annual volume, direct costs and RVUs required per test. In addition, the chief financial officer has told the department that its share of the organizations overhead costs is $600,000.

Using RVUs to allocate overhead to each test, what is the full cost price of each test? If the target profit is 5%, what should the price be for each test?

	Test A	Test B	Test C
Annual volume	7,500	8,800	4,250
Direct costs	550,000	700,000	550,000
RVU per test	12	8	22
Total RVUs	90,000	70,400	93,500
Allocated overhead
Overhead costs	600,000