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OpenStudy (anonymous):
a point-of-care instrument costs $2000. The cost of the reagent for a single test on this instrument is $15. A typical instrument of this type last one year and does 4000 tests. The reimbursement rate for this analysis is $18. With this information perform a break even analysis, construct a cost-volume-profit graph or table and determine the margin of safety. What would be the minimum reimbursement needed to break even on this test?
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