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What must be the amount of net income

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Question - Vanessa is trying to decide on what option to choose as a compensation or benefit as a managing partner in their partnership. Option A would make her entitled to a monthly salary of P25,000. Option B would be a monthly salary of P12,000 plus a bonus. Bonus shall be computed as 8% of net income after salaries and the bonus. If option A is chosen, the total salaries given to partners shall be 600,000. The average capital of the partners are as follows: Theresa, 450,000; Ursula, 500,000 and Vanessa, 350,000. What must be the amount of net income so that the two options would be indifferent?

Reference no: EM133103326

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