Question: 15. Direct Method Step-Down Method Reciprocal Method Service 1 Service 2 Initial cost $48,000 $80,000 Service 3 $49,500 Operating 1 Operating 2 Total $177,500 Service

15. Direct Method

Service 1 Service 2 Initial cost $48,000 $80,000 Service 3 $49,500 Operating

Step-Down Method

1 Operating 2 Total $177,500 Service 1 40/100 60/100 (48,000) $19,200 $28,800

Reciprocal Method

0 Service 2 120/200 80/200 (80,000) 48,000 32,000 0 Service 3 38/50

Service 1 Service 2 Initial cost $48,000 $80,000 Service 3 $49,500 Operating 1 Operating 2 Total $177,500 Service 1 40/100 60/100 (48,000) $19,200 $28,800 0 Service 2 120/200 80/200 (80,000) 48,000 32,000 0 Service 3 38/50 12/50 (49,500) 37,620 11,880 0 Total

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