Needle Is a Private Laboratory That Performs More Than 100

question 33

Multiple Choice

Needle is a private laboratory that performs more than 100 different tests and analyses. Four tests require the use of a radiological counting machine that can supply 6,000 hours per year. Information on the four lab tests are as follows:
$\begin{array}{lrrrr} & \text { Test A } & \text { Test B } & \text { Test C } & \text { Test D } \\\text { Charging rate } & \$ 50 & \$ 20 & \$ 80 & \$ 70 \\\text { Variable cost } & 10 & 10 & 60 & 30 \\\text { Machine hours } & 2 & 1 & 0.5 & 0.25\end{array}$
-Refer to the Figure.What is the contribution margin per hour of machine time for Test A?

• A)$10
• B)$20
• C)$40
• D)$100

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Definitions:

Competitive Strategy

An approach a business adopts to distinguish itself from competitors and achieve a superior position in the market, often involving pricing, product differentiation, and market segmentation strategies.

Environmental Strategy

A plan of action aimed at managing the impact of an organization's activities on the natural environment.

Functional Strategy

Detailed plans aimed at achieving the strategic objectives set for specific departments or functions within an organization.

Strategic Intent

A company's clear and concrete aim to achieve a specific goal or set of objectives, guiding its strategy and actions.