If A and B invest in a business with A investing $12,000 and B investing $18,000

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What’s inside this PDF?

Question: If A and B invest in a business with A investing $12,000 and B investing $18,000, what is the profit share of A if the total profit is $90,000?

Options:

$36,000
$30,000
$54,000
$24,000

Correct Answer: $30,000

Solution:

Total investment = 12000 + 18000 = 30000. A\'s share = (12000 / 30000) * 90000 = $36,000.

If A and B invest in a business with A investing $12,000 and B investing $18,000

Practice Questions

If A and B invest in a business with A investing $12,000 and B investing $18,000, what is the profit share of A if the total profit is $90,000?

$36,000
$30,000
$54,000
$24,000

Questions & Step-by-Step Solutions

If A and B invest in a business with A investing $12,000 and B investing $18,000, what is the profit share of A if the total profit is $90,000?

Step 1: Identify the amount A invested, which is $12,000.
Step 2: Identify the amount B invested, which is $18,000.
Step 3: Calculate the total investment by adding A's and B's investments: 12000 + 18000 = 30000.
Step 4: Calculate A's share of the total investment by dividing A's investment by the total investment: 12000 / 30000.
Step 5: Multiply A's share of the investment by the total profit to find A's profit share: (12000 / 30000) * 90000.
Step 6: Calculate the final amount: (0.4) * 90000 = 36000.
Step 7: Conclude that A's profit share is $36,000.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each party.
Proportional Calculation – Calculating shares based on total contributions and total profits.

If A and B invest in a business with A investing $12,000 and B investing $18,000

What’s inside this PDF?

If A and B invest in a business with A investing $12,000 and B investing $18,000

Practice Questions

Questions & Step-by-Step Solutions

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