A, B, and C invest in a business in the ratio of 1:1:2. If the total profit is $

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Question: A, B, and C invest in a business in the ratio of 1:1:2. If the total profit is $80,000, how much does A receive?

Options:

Correct Answer: $20,000

Solution:

A\'s share = (A\'s ratio / Total ratio) * Total profit = (1 / 4) * 80000 = $20,000.

A, B, and C invest in a business in the ratio of 1:1:2. If the total profit is $80,000, how much does A receive?

A, B, and C invest in a business in the ratio of 1:1:2. If the total profit is $80,000, how much does A receive?

Step 1: Identify the investment ratio of A, B, and C. The ratio is 1:1:2.
Step 2: Calculate the total parts of the ratio. Add the parts together: 1 + 1 + 2 = 4.
Step 3: Determine A's share of the total profit. A's part of the ratio is 1.
Step 4: Use the formula to find A's share: (A's ratio / Total ratio) * Total profit.
Step 5: Substitute the values into the formula: (1 / 4) * 80000.
Step 6: Calculate A's share: 1 divided by 4 equals 0.25, then multiply by 80000 to get 20000.
Step 7: Conclude that A receives $20,000.

Ratio and Proportion – Understanding how to divide profits based on the investment ratios of different parties.
Profit Distribution – Calculating individual shares of profit based on total profit and individual ratios.