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Richard, a manager, is entitled to 1/3 of the profit. The remaining profit is shared between Richard and Joyce in the ratio of their contributions: Richard contributed GHC 5,000 and Joyce GHC 10,000.

Business/Management

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Answer

GHC 4,000\text{GHC } 4,000

000=GHC 5,000000 = \text{GHC } 5,000

Step-by-step solution

5 steps
  1. Calculate Richard's share as a manager.

    Richard receives 13\frac{1}{3} of the total profit as a manager.

    Richard’s manager share=13×GHC 9,000=GHC 3,000\text{Richard's manager share} = \frac{1}{3} \times \text{GHC } 9,000 = \text{GHC } 3,000
  2. Calculate the remaining profit to be shared.

    The remaining profit is the total profit minus Richard's manager share.

    Remaining profit=GHC 9,000−GHC 3,000=GHC 6,000\text{Remaining profit} = \text{GHC } 9,000 - \text{GHC } 3,000 = \text{GHC } 6,000
  3. Determine the ratio of contributions.

    Joyce contributed GHC 10,000 and Richard contributed GHC 5,000.

    Ratio of contributions (Joyce : Richard)=10,000:5,000\text{Ratio of contributions (Joyce : Richard)} = 10,000 : 5,000

    Divide both sides by 5,000 to simplify the ratio:

    Ratio of contributions (Joyce : Richard)=2:1\text{Ratio of contributions (Joyce : Richard)} = 2 : 1

    The total parts in the ratio are 2+1=32 + 1 = 3.

  4. Share the remaining profit according to the contribution ratio.

    Joyce's share from the remaining profit:

    Joyce’s share=23×GHC 6,000=GHC 4,000\text{Joyce's share} = \frac{2}{3} \times \text{GHC } 6,000 = \text{GHC } 4,000

    Richard's share from the remaining profit:

    Richard’s share=13×GHC 6,000=GHC 2,000\text{Richard's share} = \frac{1}{3} \times \text{GHC } 6,000 = \text{GHC } 2,000
  5. Calculate the total amount received by Joyce and Richard.

    Joyce's total receipt is her share from the remaining profit.

    Joyce’s total receipt=GHC 4,000\text{Joyce's total receipt} = \boxed{\text{GHC } 4,000}

    Richard's total receipt is his manager share plus his share from the remaining profit.

    Richard’s total receipt=GHC 3,000+GHC 2,000=GHC 5,000\text{Richard's total receipt} = \text{GHC } 3,000 + \text{GHC } 2,000 = \boxed{\text{GHC } 5,000}
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