Therefore, the cost per test for the first year and the fifth year is both $2.50. In summary, the total cost over 5 years for Zena is $250,000. The cost per test for both the first year and the fifth year is $2.50.
To calculate the total cost over 5 years for Zena, we need to sum the annual costs for each item and then calculate the cost per test for the first year and the fifth year.
Given the provided information, let's fill in the chart:
ZENA COST ANALYSIS
Item Cost/Year 5 year Cost
Reagent Cost/Test ($1.00 each x number of tests)
Maintenance Contract
Disposables
Tech equivalents (4)
Payment (one time) on analyzer $50,000 $50,000
TOTAL
To calculate the total cost over 5 years, we multiply the annual cost by the number of years:
Total cost over 5 years = $50,000 * 5
Total cost over 5 years = $250,000
Now let's calculate the cost per test for the first year:
Cost per test first year = Total cost per year / Number of tests per year
Cost per test first year = $50,000 / 20,000 tests per year
Cost per test first year = $2.50 per test
Next, we'll calculate the cost per test for the fifth year:
Cost per test fifth year = Total cost over 5 years / Number of tests over 5 years
Cost per test fifth year = $250,000 / 100,000 tests over 5 years
Cost per test fifth year = $2.50 per test
Therefore, the cost per test for the first year and the fifth year is both $2.50.
In summary, the total cost over 5 years for Zena is $250,000. The cost per test for both the first year and the fifth year is $2.50.