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.

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.

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Originally Posted by pready

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.

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Ok got it.

Thanks a lot!