Paul and Xavier have a business selling homemade soaps. They have been very successful in their first year of operation and have made a profit of $48,000.

Your partnership agreement sets forth the following provisions:

• Paul will be assigned a salary of $11,000 to reflect his extensive knowledge of soap operas.

• Interest on principal will be provided at 7% per year.

• The balance of profits will be divided equally.

Questions

When they set up the business, Paul injected capital of $8,000 and Xavier $12,000.

How much utility is assigned to Xavier?

Answer rating: 100% (QA)

To determine the utility assigned to Xavier we need to calc... View the full answer