A and B start a business with investments of $12,000 and $18,000 respectively. I

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Question: A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $9,000, how much profit does A get?

Options:

$3,600
$4,000
$4,500
$5,400

Correct Answer: $5,400

Solution:

Investment ratio = 12000:18000 = 2:3. A\'s share of profit = (2/5) * 9000 = $3,600.

A and B start a business with investments of $12,000 and $18,000 respectively. I

Practice Questions

A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $9,000, how much profit does A get?

$3,600
$4,000
$4,500
$5,400

Questions & Step-by-Step Solutions

A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $9,000, how much profit does A get?

Correct Answer: $3,600

Step 1: Identify the investments of A and B. A invests $12,000 and B invests $18,000.
Step 2: Find the total investment by adding A's and B's investments together. Total investment = $12,000 + $18,000 = $30,000.
Step 3: Determine the ratio of A's investment to the total investment. A's investment ratio = $12,000 / $30,000 = 2/5.
Step 4: Calculate the total profit made by the business, which is $9,000.
Step 5: Find A's share of the profit using the ratio. A's share of profit = (2/5) * $9,000.
Step 6: Calculate A's share of the profit. A's share = $3,600.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners.
Ratios – Calculating and simplifying ratios to determine the share of profits.

A and B start a business with investments of $12,000 and $18,000 respectively. I

What’s inside this PDF?

A and B start a business with investments of $12,000 and $18,000 respectively. I

Practice Questions

Questions & Step-by-Step Solutions

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