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C and D invest in a partnership with C investing $12000 and D investing $18000.
Practice Questions
Q1
C and D invest in a partnership with C investing $12000 and D investing $18000. If the total profit is $3000, what is D's share of the profit?
$1200
$1800
$2000
$1500
Questions & Step-by-Step Solutions
C and D invest in a partnership with C investing $12000 and D investing $18000. If the total profit is $3000, what is D's share of the profit?
Steps
Concepts
Step 1: Identify the amount C invested, which is $12000.
Step 2: Identify the amount D invested, which is $18000.
Step 3: Calculate the total investment by adding C's and D's investments: 12000 + 18000 = 30000.
Step 4: Determine D's share of the total investment by dividing D's investment by the total investment: 18000 / 30000.
Step 5: Calculate D's share of the profit by multiplying D's share of the investment by the total profit: (18000 / 30000) * 3000.
Step 6: Simplify the calculation: (0.6) * 3000 = 1800.
Step 7: Conclude that D's share of the profit is $1800.
Partnership Profit Sharing
– Understanding how profits are distributed in a partnership based on the ratio of individual investments.
Proportional Distribution
– Calculating shares based on the proportion of total investment.
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