A and B invest in a business with A investing $25,000 and B investing $35,000. I

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Question: A and B invest in a business with A investing $25,000 and B investing $35,000. If the total profit is $60,000, what is A\'s share?

Options:

Correct Answer: $30,000

Solution:

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

A and B invest in a business with A investing $25,000 and B investing $35,000. If the total profit is $60,000, what is A's share?

A and B invest in a business with A investing $25,000 and B investing $35,000. If the total profit is $60,000, what is A's share?

Step 1: Identify A's investment amount, which is $25,000.
Step 2: Identify B's investment amount, which is $35,000.
Step 3: Calculate the total investment by adding A's and B's investments: $25,000 + $35,000 = $60,000.
Step 4: Identify the total profit, which is $60,000.
Step 5: Calculate A's share of the profit using the formula: (A's investment / Total investment) * Total profit.
Step 6: Substitute the values into the formula: (25000 / 60000) * 60000.
Step 7: Simplify the calculation: (25000 / 60000) equals 0.4167 (approximately).
Step 8: Multiply 0.4167 by the total profit of $60,000: 0.4167 * 60000 = $25,000.
Step 9: Conclude that A's share of the profit is $25,000.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each partner.
Proportional Calculation – Calculating shares based on ratios derived from investments.