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    coolfield7's Avatar
    coolfield7 Posts: 21, Reputation: 1
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    #1

    Nov 20, 2013, 10:26 PM
    Finding profit...
    I have a problem that I'm stumped over. In my textbook it says, " 3 persons, A, B, and C enter a business together; they contribute $50,000, $60,000, and $100,000 respectively. In a particular year the profit they make is $224,000. The profit is shared among A, B, and C in proportion to their contributions."
    I'm having trouble finding each of their profit, I tried a lot but my answers are always off from the answers from the book.

    Thank you.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Nov 20, 2013, 11:26 PM
    First calculate the total amount of contributions, which is $50,000 plus $60,000 plus $100,000. Now calculate the percentage of each contribution. So for person A is $50,000 divided by $210,000 times 100. Person B is $60,000 divided by $210,000 times 100. Person C is $100,000 divided by $210,000 times 100. Note you will need to round your percentages to 2 decimal points and your three percentages should equal 100.

    Now take each persons percentage times the profit of $224,000. Note you should round your answer to 2 decimal places and the sum of your amounts should equal $224,000.
    coolfield7's Avatar
    coolfield7 Posts: 21, Reputation: 1
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    #3

    Nov 20, 2013, 11:40 PM
    Quote Originally Posted by pready View Post
    First calculate the total amount of contributions, which is $50,000 plus $60,000 plus $100,000. Now calculate the percentage of each contribution. So for person A is $50,000 divided by $210,000 times 100. Person B is $60,000 divided by $210,000 times 100. Person C is $100,000 divided by $210,000 times 100. Note you will need to round your percentages to 2 decimal points and your three percentages should equal 100.

    Now take each persons percentage times the profit of $224,000. Note you should round your answer to 2 decimal places and the sum of your amounts should equal $224,000.
    Ok got it.

    Thanks a lot!
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