Needle Is a Private Laboratory That Performs More Than 100

question 149

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 C?

• A)$10
• B)$20
• C)$40
• D)$100

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Definitions:

Empiricism

The philosophical stance that knowledge comes primarily from sensory experience or experimentation.

Common-Sense Approach

A practical and straightforward method of solving problems or understanding concepts that is based on ordinary, everyday reasoning and experiences.

Counselling Psychology

A branch of psychology focused on facilitating personal and interpersonal functioning across the lifespan with an emphasis on emotional, social, vocational, educational, health-related, and developmental concerns.

Personality Psychology

The branch of psychology that studies personality and individual differences in behavior, emotions, and thought patterns.