r this question, ed in the same way as $25,000. NOW WHAT IS LIIC ILL JClicuit. (IU NIS Wer th: assume that the profit requirement is allocated in + overhead costs.) 7.3 Allied Laboratories is combining some of its most com one-price packages. One such package will contain three have the following variable costs: mmon tests into ntain three tests that Disposable syringe Blood vial Forms Reagents Sterile bandage Breakage/losses Test A $3.00 0.50 0.15 0.80 0.10 0.05 Test B $3.00 0.50 0.15 0.60 0.10 0.05 Test C $3.00 0.50 0.15 1.20 0.10 0.05 When the tests are combined, only one syringe, form, and sterile ban- dage will be used. Furthermore, only one charge for breakage/losses will apply. Two blood vials are required, and reagent costs will remain the same (reagents from all three tests are required). a. As a starting point, what is the price of the combined test assuming marginal cost pricing? b. Assume that Allied wants a contribution margin of $10 per test. What price must be set to achieve this goal? c. Allied estimates that 2,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs totals $40,000. What price must be set Chapter 7: Service Line Costing and Prici to cover full costs? What price must be set to produce a profit of $20.000 on the combined test