Question: Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests that they perform

Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests that they perform require the use of a specialized machine that can supply 14,000 hours per year. Information on the four lab tests follows:

Test A Test B Test C Test D
Charging rate $65 $51 $48 $32
Variable cost $25 $18 $13 $8
Machine hours 3 2 1 0.5

What is the contribution margin per hour of machine time for Test B?

a.$16.25

b.$33

c.$20.50

d.$18

e.$16.50

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