A and B invest in a business with A investing $40,000 and B investing $60,000. I

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Question: A and B invest in a business with A investing $40,000 and B investing $60,000. If the total profit is $200,000, what is B\'s share?

Options:

Correct Answer: $100,000

Solution:

B\'s share = (B\'s investment / Total investment) * Total profit = (60000 / 100000) * 200000 = $120,000.

A and B invest in a business with A investing $40,000 and B investing $60,000. If the total profit is $200,000, what is B's share?

A and B invest in a business with A investing $40,000 and B investing $60,000. If the total profit is $200,000, what is B's share?

Step 1: Identify A's investment, which is $40,000.
Step 2: Identify B's investment, which is $60,000.
Step 3: Calculate the total investment by adding A's and B's investments: $40,000 + $60,000 = $100,000.
Step 4: Identify the total profit, which is $200,000.
Step 5: Calculate B's share of the total profit using the formula: (B's investment / Total investment) * Total profit.
Step 6: Substitute B's investment and total investment into the formula: (60,000 / 100,000) * 200,000.
Step 7: Simplify the fraction: 60,000 / 100,000 = 0.6.
Step 8: Multiply 0.6 by the total profit: 0.6 * 200,000 = $120,000.
Step 9: Conclude that B's share of the profit is $120,000.

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.