Using the Reciprocal Services Method, Which of the Following Equations

question 54

Multiple Choice

Using the reciprocal services method, which of the following equations represents the correct algebraic expression needed to capture the total costs of a Janitorial Department (J) that includes $350,000 of direct costs and 30% of the Maintenance Department (M) cost and the Maintenance Department that includes $50,000 of direct costs and 50% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)

• A)J = $350,000 + (0.30 ÷ $50,000) + (0.50 ÷ J)
• B)J = ($350,000 × 0.30) + ($50,000 × 0.50) + J
• C)J = $350,000 - [(0.30 × $50,000) - (0.50 × J)]
• D)J = $350,000 + {0.30 × [$50,000 + (0.50 × J)]}

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