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:

Norris-LaGuardia Act

A 1932 United States federal law that limited the power of federal courts to issue injunctions against non-violent labor disputes.

Union Organizing

The process by which workers form or join a union to collectively bargain with their employer.

Unfair Labor Practices

Conduct by unions or employers that infringes upon employees' rights or breaches labor legislation.

Railway Labor Act

A U.S. law enacted in 1926 that seeks to avoid any interruption to commerce or to the operation of any carrier, facilitating labor relations in the railway and airline industries.