A and B invest in a business in the ratio 4:6. If A's profit is $2,400, what is

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Question: A and B invest in a business in the ratio 4:6. If A\'s profit is $2,400, what is the total profit?

Options:

Correct Answer: $4,800

Solution:

Profit ratio = 4:6 = 2:3. If A\'s share is $2400, total profit = (2400 * 5) / 2 = $6,000.

A and B invest in a business in the ratio 4:6. If A's profit is $2,400, what is the total profit?

A and B invest in a business in the ratio 4:6. If A's profit is $2,400, what is the total profit?

Correct Answer: $6,000

Step 1: Understand the investment ratio. A and B invest in the ratio 4:6.
Step 2: Simplify the ratio 4:6 to its simplest form, which is 2:3.
Step 3: Identify A's share of the profit. A's profit is given as $2,400.
Step 4: Calculate the total parts in the profit ratio. Add the parts of A and B: 2 + 3 = 5 parts.
Step 5: Since A's share corresponds to 2 parts, we can find the total profit using the formula: Total Profit = (A's Profit * Total Parts) / A's Parts.
Step 6: Substitute the values into the formula: Total Profit = (2400 * 5) / 2.
Step 7: Calculate the total profit: Total Profit = 12000 / 2 = $6,000.

Profit Sharing Ratio – Understanding how profits are distributed based on the investment ratio.
Proportional Calculation – Calculating total profit based on an individual's share and the established ratio.