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The Long Term Care Plus Company has two service departments - actuarial and premium rating, and two operations departments marketing and sales. The distribution 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: FROM TO Rating Marketing Sales 10% 10% 80% 0% 40.0% 40.0% Actuarial 0% 20% Actuarial Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $70,000 $30,000 $58,000 $89,000 The total cost accumulated in the sales department using the reciprocal 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): Multiple Choice $80,857 $101,037. $166,143. $121,106. $128,685
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