Needle Is a Private Laboratory That Performs More Than 100

question 43

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 unit of machine time for Test D?

• A)$20
• B)$40
• C)$100
• D)$160

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Definitions:

Static Equilibrium

A state where an object is at rest and the sum of all forces and torques acting on it is zero, resulting in no movement.

Dynamic Equilibrium

A state of balance between continuing processes, often referring to the balance of substances in a chemical reaction.

Barany Test

A clinical test used to evaluate the function of the vestibular apparatus in the inner ear, specifically to detect issues with balance and spatial orientation.

Nystagmus

Nystagmus is a condition characterized by involuntary, rapid eye movements which can result in reduced or limited vision.