The Long Term Care Plus Company Has Two Service Departments

question 29

Multiple Choice

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: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) :

• A) $102,222.
• B) $122,402.
• C) $127,778.
• D) $142,471.
• E) $150,050.

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Definitions:

Income Change

A variation in the amount of earnings received by a household or individual, which could arise from sources such as wages, investments, or benefits.

Price Change

Refers to the variance in the cost of goods or services over time, which can be an increase or a decrease.

Market Quantity

The total amount of a specific good or service that is available for purchase in a market at a given time.

Buyers

People or organizations that acquire products or services within a marketplace.