Question

The band is breaking up and Rob, Sue, Tim and Vito each want the tour bus. Using the method of sealed bids, Rob bids $3800, Sue bids $3500, Tim bids $5600, and Vito bids $6800 for the bus. Since Vito's bid is the highest, he gets the bus and has to compensate the others to make the division fair. How much money will Rob get from Vito?

Answer 1

Sue will get 825 + 2,125/4 = $1,356.25

Explanation:

Shares:

Sue: 825

Vito: 1,825

Tim: 1,375

Rob: 1,150

Vito gets the bus so they pay the group 7,300 - 1,825 = 5,475

Everybody gets their share, so there is 5,475 - 1,150 - 825 - 1,375 = 2,125 remaining, which is also split over the 4 people.

This means Sue will get 825 + 2,125/4 = $1,356.25