Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two produ...
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Accounting
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two produ lines are served by three operating departments which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Operating Departments Claims Information Technology Processing Administration Sales 20% 30 Operations Information technology Operations 20% 10 48% 50 20% 18% The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales S 635,000 1,790,000 290,000 644,000 650,e80 4,009,000 Total costs


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