Question

ANSWER BOTH!

A company loses $5,400 as the result of a manufacturing defect. The 8 owners of the company must share the loss equally.

Part A
Which expression shows the change in profit for each owner?
A. –5,400 + 8
B. –5,400 – 8
C. –5,400 • 8
D. –5,400 ÷ 8
Part B
Find the change in profit in dollars for each owner.
A. –43,200
B. 675
C. –675
D. 5,392

Answer 1

Part A = D
Part B = C

Answer 2

a) D. . –5,400 ÷ 8

b) C. -675

Explanation:

a) If a company looses $5,400 as a result of manufacturing defect and 8 of the company must share the loss then individual loss will be calculated as:

$5400÷8

Since it is a loss, the money is going out (debit). The value each individual lost will as such be negated to have -$5400÷8

b) change in profit in dollars for each owner can be calculated by simplifying the expression in (a)

-$5400÷8 = -675