Suppose the development department of a firm charges 10% of its total monthly costs to the promotional department, and the promotional department charges 5% of its total monthly costs to the development department. The direct costs of the development department are $25,400, and the direct costs of the promotional department are $9,400. The solution to the matrix equation or the column matrix
gives the total costs for each department. Note that this equation can be written in the form
or
, which is the form for an open economy. Find the total costs for each department in this (micro) economy.
A) development = 27,000, promotional = 11,000
B) development = 27,000, promotional = 12,000
C) development = 26,000, promotional = 12,000
D) development = 38,000, promotional = 12,000
E) development = 26,000, promotional = 11,000
Correct Answer:
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