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How much did each customer receive due to a class action lawsuit settlement of $47.4 million, assuming there were 70 million customers who each received an equal amount, and the legal costs were 42% of the settlement?

A. 22.9 cents
B. 42.2 dollars
C. 70.0 cents
D. 39.3 dollars
E. 39.3 cents

Answer :

To solve this question, we need to determine how much each customer received from the settlement. Here are the steps to find the answer:

1. Understand the Total Settlement and Legal Costs:
- The total settlement amount is $47.4 million.
- Legal costs are 42% of the total settlement.

2. Calculate the Legal Costs:
- To find the legal costs, multiply the total settlement amount by 42%.
- Legal Costs = 47.4 million 0.42 = 19.908 million dollars.

3. Determine the Remaining Amount:
- Subtract the legal costs from the total settlement to find out how much money is left to distribute among the customers.
- Remaining Amount = 47.4 million - 19.908 million = 27.492 million dollars.

4. Calculate the Amount per Customer:
- There are 70 million customers, and we need to divide the remaining amount equally among them.
- Amount per Customer = 27.492 million / 70 million = 0.392742857 dollars per customer.

5. Convert to Cents for Final Answer:
- Since the answers are given in cents or dollars, we multiply the dollar amount by 100 to convert it to cents.
- Amount per Customer in Cents = 0.392742857 100 = 39.3 cents (approximately).

Therefore, each customer received approximately 39.3 cents from the settlement. The correct answer is 39.3 cents.

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