The Long Term Care Plus Company has two service departments

Question

The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two operations departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below:The total cost accumulated in the marketing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume the actuarial department goes first):
A) $100,000. 
B) $104,000. 
C) $126,000. 
D) $130,000. 
E) $135,000.

Quizplus · Accepted Answer

The Answer of The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two operations departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below:The total cost accumulated in the marketing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume the actuarial department goes first):
A) $100,000. 
B) $104,000. 
C) $126,000. 
D) $130,000. 
E) $135,000.