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Problem:

Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $20,000, annual overhead allocation = $10,000, variable cost per test = $5, and expected volume = 5,000 tests.

Required:

Question: What price should be set under marginal cost pricing?

Note: Please provide through step by step calculations.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163301

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