If A, B, and C invest in a business with amounts of $15,000, $25,000, and $10,00
Practice Questions
Q1
If A, B, and C invest in a business with amounts of $15,000, $25,000, and $10,000 respectively, what is the profit share of B if the total profit is $50,000?
$20,000
$25,000
$15,000
$10,000
Questions & Step-by-Step Solutions
If A, B, and C invest in a business with amounts of $15,000, $25,000, and $10,000 respectively, what is the profit share of B if the total profit is $50,000?
Correct Answer: $25,000
Step 1: Identify the amounts invested by A, B, and C. A invested $15,000, B invested $25,000, and C invested $10,000.
Step 2: Calculate the total investment by adding the amounts: $15,000 + $25,000 + $10,000 = $50,000.
Step 3: Determine B's share of the total investment by dividing B's investment by the total investment: $25,000 / $50,000.
Step 4: Calculate B's share of the profit by multiplying B's share of the investment by the total profit: ($25,000 / $50,000) * $50,000.
Step 5: Simplify the calculation: (0.5) * $50,000 = $25,000.
Step 6: Conclude that B's profit share is $25,000.
Investment Proportions – Understanding how to calculate profit shares based on the proportion of total investment.
Profit Distribution – Applying the concept of profit sharing according to investment contributions.
