8. Profit Sharing To form a new enterprise, Company A invests $1.4 million and Company B invests $2.6 million. The enterprise is sold a year later for $6.4 million. Explore the following methods of dividing the S$6.4 million, and comment on their fairness. (a) Companies A and B divide the $6.4 million equally. (b) Companies A and B get their original investment back and share the profit equally. (c) Each company gets a fraction of the $6.4 million proportional to the amount it invested.

8. Profit Sharing To form a new enterprise, Company A invests $1.4 million and Company B invests $2.6 million. The enterprise is sold a year later for $6.4 million. Explore the following methods of dividing the S$6.4 million, and comment on their fairness. (a) Companies A and B divide the $6.4 million equally. (b) Companies A and B get their original investment back and share the profit equally. (c) Each company gets a fraction of the $6.4 million proportional to the amount it invested.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

8. Profit Sharing To form a new enterprise, Company A invests $1.4 million and Company
B invests $2.6 million. The enterprise is sold a year later for $6.4 million. Explore the
following methods of dividing the S$6.4 million, and comment on their fairness.
(a) Companies A and B divide the $6.4 million equally.
(b) Companies A and B get their original investment back and share the profit equally.
(c) Each company gets a fraction of the $6.4 million proportional to the amount it
invested.

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