Deducting production costs from a total value

Question

I have a rather rudimentary question regarding figuring out production costs for something. Let's say I am selling an Object for a retail value of $10,000.00 and the person who I am getting it from paid $2000.00 to produce it, of which only $1000 needs to be reimbursed to him.

This is what i've used from before but someone is telling me the calculation is incorrect:

Cost:         $10,000.00
- Production: $1,000.00
Subtotal:     $9,000.00
Share 50%:    $4,500.00
+ Production: $1,000.00
Due Person A: $5,500.00
Due Person B: $4,500.00

The other calculation they are telling me to use is:

Cost:         $10,000.00
Share 50%:    $5,000.00
+ Production: $1,000.00
Due Person A: $6,000.00
Due Person B: $4,000.00

I feel like this is staring me squarely in the face but I am getting two different values and not sure which would be the correct calculation.

Answer 1

There is 8000 profit, so each person should receive 4000 of it. Whoever actually paid the 2000 should be reimbursed, then the remaining 8000 should be divided. In your first calculation you only account for 1000 production cost.

Answer 2

The first calculation is wrong because you are only sharing out half the cost of the production. The second calculation is correct.