Question

Using the reciprocal services method, which of the following equations represents the correct algebraic expression needed to capture the total costs of a Janitorial Department (J) that includes $350,000 of direct costs and 30% of the Maintenance Department (M) cost and the Maintenance Department that includes $50,000 of direct costs and 50% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department’s costs.) Group of answer choices J = $350,000 + (0.30 ÷ $50,000) + (0.50 ÷ J) J = ($350,000 × 0.30) + ($50,000 × 0.50) + J J = $350,000 – [(0.30 × $50,000) – (0.50 × J)] J = $350,000 + {0.30 × [$50,000 + (0.50 × J)]}

Answer 1

Answer:

J = $350,000 + {0.30 × [$50,000 + (0.50 × J)]}

Explanation:

Data provided in the question

Janitorial Department (J) that includes $350,000 of direct costs and 30% of the Maintenance Department (M)

i.e., J = $350,000 + ( 30% × M )

And

Maintenance dept. (M) includes $50000 of direct costs and also 50% of the janitorial dept. (J)

i.e., M = $50,000 + ( 50% × J )

Therefore

The equation is shown below:

J = $350,000 + (0.30 × M) and M = $50,000 + (0.50 × J)

Now put the M values in the J equation

J = $350,000 + {0.30 × [$50,000 + (0.50 × J)]}