SOLUTION: An engineering film is owned by three partners (Alan, Barbarra and Chuck) with 4,000, 3,000 and 1,000 shares respectively. The company's net income for the year is $4,500,000 and 1

Question 1165269: An engineering film is owned by three partners (Alan, Barbarra and Chuck) with 4,000, 3,000 and 1,000 shares respectively. The company's net income for the year is $4,500,000 and 10% of it is a performance bonus. The bonus will be allocated in the following way:
-$70,000 to be distributed amongst all staff excluding the partners.
- Each partner will get $80,000
- The remainder is to be divided among the partners in proportion to the number of shares held.
What was the total amount of bonus received by each partner?
Answer by Seutip(231) (Show Source): You can put this solution on YOUR website!
10% of $4,500,000 is $450,000 (Performance Bonus)
$450,000-$70,000(for the staff) =$380,000 left
Alan will get =$80,000
Barbara will get =$80,000
Chuck will get =$80,000
WE only now have $140,000 to be divided by their portion share.
Let:
4000x-be alan's share
3000x-be barbara's share
1000x-be chuck's share
4000x+3000x+1000x=140000
8000x=140000
x=17.5
Therefore:
Alan will get - $80,000 and (4000x=$70,000)
Allan =$150,000
Barbara will get - $80,000 and (3000x=$52,500)
Barbara=$132,500
Chuck will get - $80,000 and (1000x=$17,500)
Chuck=$97,500
Hope that helps!
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