Suppose the development dept of a firm charges 10% of its total monthly costs to the promotional dept, and the promotional dept charges 5% of its total monthly costs to the development dept.
If the direct costs of the development dept. are $19895 and the direct costs of the promotional dept are $10000, find the total costs for each dept.
Ans. Devel. = $20,497, promo. = $12,049
I am just beginning to study business math but on this question didn't know how to use the direct costs to effect the total costs.
.10(19895) + 10000 i thot would be the total costs of the promo dept but its not.
so need help knowing how to set this up