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Delphi has developed a new drug which reduces the risk of infection during joint replacement surgeries. Delphi's drug will compete with an existing drug that is priced at $30.00 per dose. Only one dose is needed during each surgery. Whenever an infection occurs, doctors have to administer an antibiotic which costs $250. While the rate of infection with the existing drug is 10%, lab tests show the rate of infection with Delphi's drug to be 5%. For 10% of infected patients, the consequences of infection are more severe. In these cases, the infected person needs two doses of the antibiotic to recover instead of one. Furthermore, these patients need an additional day of hospitalization which costs the hospital $500. To preserve its effectiveness, the Delphi drug must be held in a special disposable container until it is ready to be administered. Each container costs $6.00 and holds ten doses of the drug. Compute the economic value per dose of Delphi's new drug.
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