Marvette S. answered 05/29/23
Tutoring That Makes Algebra & Accounting Make Sense!
Old Ratio
2:3:5:7
Because:
2+3+5+7=17
Old Profit Sharing Ratio
A = 2/17
B = 3/17
C = 5/17
D = 7/17
New Ratio Calculations
A = 2/17 * 1 = 2/17
B = 3/17 * (1 – 1/2) = 3/17 * 1/2 = 3/34
C = 5/17 * (1- 1/2) = 5/17 * 1/2 = 5/34
D = 7/17 * (1 – 4/9) = 7/17 * 5/9 = 35/153
Calculate Equivalent Ratios
A = 2/17 * 18/18 = 36/306
B = 3/34 * 9/9 = 27/306
C = 5/34 * 9/9 = 45/306
D = 35/153 * 2/2 = 70/306
New Profit-Sharing Ratio
Starting at the 5th Month
A = 36/306
B = 27/306
C = 45/306
D = 70/306
36:27:45:70
Finding Profit Sharing At The End of the Year
Add
Old Ratio for 4 out of 12 months = 4/12 = 1/3
New Ratio for 8 out of 12 months = 8/12 = 2/3
Calculations
A =(2/17 * 1/3) + (2/17 * 2/3) = 2/51 + 4/51 = 6/51 = 2/17
B = (3/17 * 1/3) + (3/34 * 2/3) = 3/51 + 6/102 = 6/102 +6/102 = 12/102 = 4/34
C = (5/17 * 1/3) + (5/34 * 2/3) = 5/51 + 10/102 = 10/102 + 10/102 = 20/102 = 10/51
D = (7/17 * 1/3) + (35/153 * 2/3) = 7/51 + 70/459 = 63/459 + 70/459 = 133/459 = 133/459
Calculate Equivalent Ratios
A = 2/17 * 54/54 = 108/918
B = 4/34 * 27/27 = 108/918
C = 10/51 * 18/18 = 180/918
D = 133/459 * 2/2 = 266/918
108:108:180:266
Answer:
The ratio of their profits at the end of the year is
54:54:90:133
Marvette S.
05/30/23
Krugen K.
Thank you I fully understand now.05/30/23