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Which amounts reflects the indirect costs of the laboratory

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Question - Mercy Hospital operates an on-site laboratory. Total (direct and allocated) costs associated with the laboratory are estimated to be $500,000. Of the $500,000, Mercy estimates that $350,000 could be eliminated if the laboratory were closed. Which of the amounts below reflects the indirect costs of the laboratory?

A. $500,000

B. $350,000

C. $150,000

D. $850,000

E. Can't tell from the information provided

Reference no: EM133100714

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