A and B start a business with investments of $25,000 and $35,000 respectively. I

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What’s inside this PDF?

Question: A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $60,000, how much will A receive?

Options:

$25,000
$30,000
$35,000
$15,000

Correct Answer: $30,000

Solution:

Total investment = 25000 + 35000 = 60000. A\'s share = (25000 / 60000) * 60000 = $25,000.

A and B start a business with investments of $25,000 and $35,000 respectively. I

Practice Questions

A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $60,000, how much will A receive?

$25,000
$30,000
$35,000
$15,000

Questions & Step-by-Step Solutions

A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $60,000, how much will A receive?

Step 1: Identify the investments of A and B. A invested $25,000 and B invested $35,000.
Step 2: Calculate the total investment by adding A's and B's investments together: 25000 + 35000 = 60000.
Step 3: Determine A's share of the total investment by dividing A's investment by the total investment: 25000 / 60000.
Step 4: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (25000 / 60000) * 60000.
Step 5: Simplify the calculation: A's share of the profit is $25,000.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners.
Ratios – Calculating shares based on the proportion of individual investments to total investments.

A and B start a business with investments of $25,000 and $35,000 respectively. I

What’s inside this PDF?

A and B start a business with investments of $25,000 and $35,000 respectively. I

Practice Questions

Questions & Step-by-Step Solutions

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