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Company Y has two service departments DA and DB, and two production departments, P1 and P2. Services provided to: Departments Costs DA $100,000 DB $50,000
Company Y has two service departments DA and DB, and two production departments, P1 and P2.
| Services provided to: | |||
Departments Costs | DA $100,000 | DB $50,000 | P1 | P2 |
|
| 15% |
|
|
| 20% |
|
|
|
Required:
Set up algebraic equations in linear form for each department to express reciprocal relationship
Department A (DA) and Department B (DB)
A. | DA = $100,000 + 0,05 DB and DB = $50,000 + 0,05 DA
| |
B. | DA = $100,000 + 0,15 DB and DB = $50,000 + 0,2 DA
| |
C. | DA = $100,000 + 0,2 DB and DB = $50,000 + 0,15 DA |
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