Question
Sample answer page (Note: You are expected to show work for all steps on the Work page) Description of scenario: Doug, Edward, Frank, and George
Sample answer page (Note: You are expected to show work for all steps on the Work page)
Description of scenario:
Doug, Edward, Frank, and George have inherited some furniture from their great-grandmothers estate and wish to divide the furniture equally among themselves. Use the method of sealed bids to find a fair division of the furniture.
Items | Doug | Edward | Frank | George | |
A. | Dresser | $280.00 | $275.00 | $250.00 | $300.00 |
Desk | $480.00 | $500.00 | $450.00 | $475.00 | |
Wardrobe | $775.00 | $800.00 | $850.00 | $800.00 | |
Dining Set | $1,000.00 | $800.00 | $900.00 | $950.00 | |
Poster Bed | $500.00 | $650.00 | $600.00 | $525.00 | |
B. | Total Bids | $3,035.00 | $3,025.00 | $3,050.00 | $3,050.00 |
Fair Share | $758.75 | $756.25 | $762.50 | $762.50 | |
Value of Items Awarded | $1,000.00 | $1,150.00 | $850.00 | $300.00 | |
C. | Pay to or Receive | Pay | Pay | Pay | Receive |
Amount | $241.25 | $393.75 | $87.50 | $462.50 | |
D. | Surplus (Kitty) | $260 | |||
Share of Surplus | $65.00 | $65.00 | $65.00 | $65.00 | |
E. | Final Share | Dining set and pays $176.25 | Desk and poster bed and pays $328.75 | Wardrobe and pays $22.50 | Dresser and receives $527.50 |
Reactions:
Dougs: Doug was happy to receive the dining set; he felt like a really wanted it more than the other items which is why he put a bid of $1,000 on it. He feels like the $176.25 payout was fair considering George just got the dresser, so the cash to George makes it fair.
Edwards: Edward is shocked he received two items from the estate, but he is happy with his final share.
Franks: Frank thinks that he received a solid deal. He put a hefty bid on the wardrobe that he really wanted, and he only must pay out a small amount. He feels fortunate.
Georges: George is upset that he got the dresser considering it was his lowest bid item. However, he is happy that he is getting $527.50 because he doesnt have to sell any of the items to get money out of them.
Work Page:
You will use this page to show your work.
Follow the steps below
- Complete the top of the chart with the items, names, and bids. For each item, indicate the winner (highlight, circle, etc.)
- For each person, calculate the Fair Share and state the total value of items won.
- Indicate if each person will be paying to the estate or receiving from the estate based on the difference between the fair share and total value of items won.
- Calculate the surplus for the estate and determine each players share of the surplus.
- State the final settlement for each player, specially indicating items won, and money to be received or paid.
Template for Module 3 Activity
This will be saved as a WORD document or PDF and be posted to a Blackboard Discussion. You may use this as a template for your assignment. Some steps were skipped in this template. DO NOT SKIP STEPS. SHOW ALL WORK.
Answer Page:
- Describe the scenario listing the items and players.
Items | Person 1 | Person 2 | Person 3 | Person 4 | |
B. | Item 1 | ||||
Item 2 | |||||
Item 3 | |||||
Item 4 | |||||
Item 5 | |||||
C. | Total Bids | ||||
Fair Share | |||||
Value of Items Awarded | |||||
D. | Pay to or Receive | ||||
Amount | |||||
E. | Surplus (Kitty) | ||||
Share of Surplus | |||||
F. | Final Share |
G. Describe the reactions of each player
Work Page:
Follow the steps below
- Complete the top of the chart with the items, names and bids. For each item, indicate the winner (highlight, circle, etc.)
- For each person, calculate the Fair Share and state the total value of items won.
- Indicate if each person will be paying to the estate or receiving from the estate based on the difference between the fair share and total value of items won.
- Calculate the surplus for the estate and determine each players share of the surplus.
- State the final settlement for each player, specially indicating items won, and money to be received or paid.
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