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Using the reciprocal services method, which of the following equations represents the algebraic expressions for the...

Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct

1 costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department?

  1. J = $350,000 - (0.30 x M) and M = $50,000 - (0.50 x J)

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

  1. J = ($350,000 x 0.30) + M and M = ($50,000 x 0.50) + J

  1. J = $350,000 + (0.30 x M) and M = $50,000 + (0.50 x J)

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Answer #1

Given that,

janitorial dept. (J) Includes $350000 of direct costs and also 30% of the maintainance dept. cost (M)

i.e., J = $350000 + ( 30% × M )

And

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

i.e., M = $50000 + ( 50% × J )

Therefore

The algebraic expressions for the two equations needed to capture the total costs are

J = $350000 + (0.30 × M) and M = $50000 + (0.50 × J)

These equations are used to derive the total cost of the respective department by following the reciprocal method.

_____×_____

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