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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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5 stepsCalculate Richard's share as a manager.
Richard receives of the total profit as a manager.
Calculate the remaining profit to be shared.
The remaining profit is the total profit minus Richard's manager share.
Determine the ratio of contributions.
Joyce contributed GHC 10,000 and Richard contributed GHC 5,000.
Divide both sides by 5,000 to simplify the ratio:
The total parts in the ratio are .
Share the remaining profit according to the contribution ratio.
Joyce's share from the remaining profit:
Richard's share from the remaining profit:
Calculate the total amount received by Joyce and Richard.
Joyce's total receipt is her share from the remaining profit.
Richard's total receipt is his manager share plus his share from the remaining profit.
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