The following set up is a system of simultaneous linear equations to allocate costs using the reciprocal method.Matrix algebra is not required.The following costs were incurred in three operating departments and three service departments in Reality Company. 
Use of services by other departments is as follows. 
The equation for department P3 (marketing) is:
Definitions:
Break-Even Time
The period it takes for a business or project to generate enough revenue to cover all its costs and start producing a profit.
Product Development Cycle
The series of stages a product goes through from conception and development to market launch and beyond.
Incremental Projects
Projects that are undertaken to bring about small, incremental improvements or additions to existing products, services, or processes.
Order Receipt Time
The time that elapses from when an order is placed to when it is received.
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