Applying the Ratio Based on Investment Method, Compute Tom and Troy's

question 100

Multiple Choice

Applying the ratio based on investment method, compute Tom and Troy's share of net income if Tom invested $300,000 and Troy invested $500,000. Net income was $130,000. (Round any intermediate calculations to two decimal places, and your final answers to the nearest dollar.)

• A) Tom, $80,000; Troy, $50,000
• B) Tom, $65,000; Troy, $65,000
• C) Tom, $49,400; Troy, $81,900
• D) None of these answers is correct.

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Definitions:

Microeconomist

An economist focused on the behavior of individuals and firms in making decisions regarding the allocation of scarce resources.

Microeconomist

A specialist in microeconomics, which deals with the economic behavior of individuals, households, and firms, and how decisions are made on the allocation of resources.

Macroeconomist

An economist who specializes in macroeconomics, studying aggregated indicators and the behavior of the economy as a whole, including inflation, unemployment, and economic growth.

Normative Statement

A statement that reflects an opinion, value judgment, or what ought to be, rather than what is empirically verifiable.