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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
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 Actuarial Rating Marketing Sales Actuarial 0% 40% 40% Rating 25% 37.3% 37.5% 20% 0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 35,000 Premium Rating $ 20,000 Marketing $ 35,000 Sales $ 45,000 The total cost accumulated in the sales department using the direct method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar): $65,667 $78,333. $56,667 $91,667 $74,333
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