Using the reciprocal services method, which of the following equations represents the algebraic expression for the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Departments (M) cost?
A)J = $350,000 + (0.30 ÷ M)
B)J = ($350,000 × 0.30) + M
C)J = $350,000 - (0.30 × M)
D)J = $350,000 + (0.30 × M)

Question

Quizplus · Accepted Answer

The correct equation is D) J = $350,000 + (0.30 × M) because it accurately represents the total costs of the Janitorial Department as being its direct costs ($350,000) plus 30% of the Maintenance Department's costs.

Using the Reciprocal Services Method, Which of the Following Equations