1) Three business partners, Hans, Karl and Tony, need to decide how much of this
ID: 3198867 • Letter: 1
Question
1) Three business partners, Hans, Karl and Tony, need to decide how much of this year's profits of $625,500 will be apportioned to each person. These amounts are to be determined based on the number of shares each person currently holds in the company. Given that the currently issued shares are held as follows: Hans holds 1,160 shares, Karl holds 880 shares and Tony holds 520 shares, calculate the amount of the profits to be allocated to each of the three partners. (5 marks) 2) Nakatomi Corporation earned a profit of 25 (SM) on sales revenues of 310 (SM) in the first quarter of 2018. Assuming the same proportionate rate for profits and revenues, what should the sales revenues target be for the second quarter to be able to post a profit of $28.5 (SM)? (3 marks) 3) Thomas Gabriel, an online currency trader, is taking advantage of a favourable swing in the exchange rateExplanation / Answer
1. Let the amount of profit for each share be x.
Hans's profit amount = 1160x
Karl's profit amount = 880x
Tony's profit amount = 520x
Total profit = $625500
1160x +520x+ 880x = 625500
2560x = 625500
x = $244.33
Therefore,
Hans's profit = 1160 x 244.33 = $283422.8
Karl's profit = 880x = 880 x 244.33 = $215010.4
Tony's profit = 520x = 520 x 244.33 = $127051.6
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.