A firm has four service centers, S1, S2, S3, and S4, which provide services to each other, as well as to three operating divisions, A, B, and C. The distribution of each service center’s output as well as its cost (in millions) is given in the following table.
Fraction of Service Center Output Used
| S1 | S2 | S3 | S4 | Division A | Division B | Division C | Total Cost | |
| S1 | 0.05 | 0.11 | 0.19 | 0.22 | 0.14 | 0.16 | 0.13 | $ 4.80 |
| S2 | 0.08 | 0.03 | 0.14 | 0.31 | 0.14 | 0.20 | 0.10 | 7.30 |
| S3 | 0.09 | 0.16 | 0.04 | 0.16 | 0.24 | 0.08 | 0.23 | 6.50 |
| S4 | 0.12 | 0.13 | 0.02 | 0.09 | 0.22 | 0.23 | 0.19 | 5.90 $24.50 |
Required:
Using the reciprocal method, allocate the costs of the service centers to the three operating divisions.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.