Answer:
Anne = $110,000
Chia = $120,000
Step-by-step explanation:
Given the following :
Anne's bid = $300000
Bette's bid = $360000
Chia's bid = $330,000
Bette has the highest bid = she gets the flower shop
Value earned by Anne and Chia = 0
Fair share value :
Bid / number of partners
Anne = $300,000 / 3 = $100,000
Bette = $360,000 / 3 = $120,000
Chia = $330,000 / 3 = $110,000
Hence, value earned - fair share value ;
Anne = (0 - 100,000) = ($100,000)
Bette = (360,000 - 120,000) = $240,000
Chia = (0 - 110,000) = ($110,000)
Surplus :
$240,000 - ($100,000 + $110,000)
$240,000 - $210,000
= $30,000
Surplus/ number of partners
$30,000 / 3 = $10,000
Amount paid by Bette to:
Anne = $100,000 + $10,000 = $110,000
Chia = $110,000 + $10,000 = $120,000
