Applying the Ratio Based on Investment Method,compute Taylor and Timmy's

question 92

Multiple Choice

Applying the ratio based on investment method,compute Taylor and Timmy's share of net income if Taylor invested $400,000 and Timmy invested $600,000.Net income was $75,000.

• A)Taylor,$15,000;Timmy,$60,000
• B)Taylor,$37,500;Timmy,$37,500
• C)Taylor,$30,000;Timmy,$45,000
• D)None of these answers is correct.

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Definitions:

Total Revenue

The complete amount of income a business receives from its operations, calculated by multiplying the price of goods by the quantity sold.

Prices

The monetary value necessary to acquire a good, service, or asset.

Marginal Revenue

The rise in income generated by selling an extra unit of a product.

Cheese

A dairy product derived from milk and produced in a wide range of flavors and textures through the process of coagulation.