A Lululime fashion business partnership has agreed that half of the annual profit be distributed in proportion to each partner's investment inthe partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the businessduring the year. In 2020 the profit of the company was $82,780. How the company should allocated this profit to its three investors if theamounts invested by Howe, Denver, and Laura are $68,000, $27,000, and $43,000, and their hours of work for the year were 420, 1170, and1230, respectively?

Profit of the company (P) = $82780 Half of the profit ($41390) to be distributed as per investment…

Answered: A Lululime fashion business partnership…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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