Mr
Subject:BusinessPrice:2.87 Bought7
Mr. Bulldozer, the managing partner in ABC Co. is entitled to a 20% bonus on profit after salaries but before bonus. ABC Co. reported profit of P360 before deductions for salaries and bonus. Salaries of partners amount to P160. Mr. Bulldozer's bonus is P50.
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Answer:
The Statement is False.
Calculation of actual bonus entitled by Mr.Bulldozer.
Profit for the year of ABC Co. = P360
Less: Salaries for the year = P160
Profit after deducting salary = P200
Bonus @ 20% (200*20%) = P40
The entitled bonus is P40 and not P50
