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Company Y has two service departments DA and DB, and two production departments, P1 and P2.
| | Services provided to: |
| Departments Costs | DA $100,000 | DB $50,000 | P1 | P2 |
| | | 15% | | |
| | 20% | | | |
Required:
Set up algebraic equations in linear form for each department to express reciprocal relationship
Department A (DA) and Department B (DB)
| | A. | DA = $100,000 + 0,05 DB and DB = $50,000 + 0,05 DA |
| | B. | DA = $100,000 + 0,15 DB and DB = $50,000 + 0,2 DA |
| | C. | DA = $100,000 + 0,2 DB and DB = $50,000 + 0,15 DA |
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