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sergejj [24]
4 years ago
5

Laverne and Shirley started a partnership. Laverne invested $4,000 in the business and Shirley invested $6,000. The partnership

agreement stipulated that profits would be divided as follows. Each partner would receive a 10% return on their invested capital with the remaining income being distributed equally between the two partners. Assuming that the partnership earned $4,500 during an accounting period, the amount of income assigned to the two partners would be:
Business
1 answer:
abruzzese [7]4 years ago
6 0

Answer: Amount of income assigned to Laverne = $2,150

Amount of income assigned to Shirley = $2,350

Explanation:

Given that,

Laverne invested = $4,000

Shirley invested = $6,000

Each partner receive = 10% return on their invested capital

and remaining income being distributed equally between the two partners.

Partnership earned = $4,500

Remaining income = Partnership earned - 10% on Laverne's capital - 10% on Laverne's capital

                               = $4,500 - $400 - $600

                               = $3,500

Amount of income assigned to Laverne:

= 10% of $4,000 + \frac{3500}{2}

= $400 + $1,750

= $2,150

Amount of income assigned to Shirley:

= 10% of $6,000 + \frac{3500}{2}

= $600 + $1,750

= $2,350

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4 years ago
A labor-intensive process has a fixed cost of $338,000 and a variable cost of $143 per unit. A capital-intensive (automated) pro
sertanlavr [38]

Answer:

the 17,941 units should be produced and sold

Explanation:

The computation of the number of units that should be generated and sold is shown below:

Let us assume the number of units be n

Now as we know that

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So the equations are

For labor intensive = $33,8000 + 143 n

And

For capital intensive = $1,244,000 + $92.5n

It could be written as

$1,244,000 + $92.5 n  <  $338,000 + $143 n

After solving it

n> 906,000÷ 50.5

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n>$1,244,000 ÷ 104.5

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