A and B start a business with investments of $5000 and $7000 respectively. If th

A and B start a business with investments of $5000 and $7000 respectively. If they earn a profit of $2400, how much profit does A receive?

A and B start a business with investments of $5000 and $7000 respectively. If they earn a profit of $2400, how much profit does A receive?

Step 1: Identify the investments of A and B. A invested $5000 and B invested $7000.
Step 2: Calculate the total investment by adding A's and B's investments: 5000 + 7000 = 12000.
Step 3: Determine A's share of the total investment by dividing A's investment by the total investment: 5000 / 12000.
Step 4: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (5000 / 12000) * 2400.
Step 5: Perform the calculation: (5000 / 12000) = 0.4167 (approximately), then 0.4167 * 2400 = 1000.
Step 6: Conclude that A receives a profit of $1000.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners in a business.
Ratios and Proportions – Applying ratios to determine each partner's share of the total profit based on their respective investments.