If A invests $40,000 and B invests $60,000 in a business, and they share the pro

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Question: If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A\'s share if the total profit is $30,000?

Options:

$10,000
$12,000
$15,000
$18,000

Correct Answer: $15,000

Solution:

Total investment = 40000 + 60000 = 100000. A\'s share = 40000/100000 * 30000 = $12,000.

If A invests $40,000 and B invests $60,000 in a business, and they share the pro

Practice Questions

If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A's share if the total profit is $30,000?

$10,000
$12,000
$15,000
$18,000

Questions & Step-by-Step Solutions

If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A's share if the total profit is $30,000?

Correct Answer: $12,000

Step 1: Identify the amount A invested, which is $40,000.
Step 2: Identify the amount B invested, 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: Determine the ratio of A's investment to the total investment: A's share = $40,000 / $100,000.
Step 5: Calculate A's share of the profit by multiplying the ratio by the total profit: A's share = ($40,000 / $100,000) * $30,000.
Step 6: Perform the calculation: A's share = 0.4 * $30,000 = $12,000.

Profit Sharing Ratio – Understanding how to calculate profit shares based on investment ratios.
Proportional Distribution – Applying proportional distribution to determine individual shares from a total profit.

If A invests $40,000 and B invests $60,000 in a business, and they share the pro

What’s inside this PDF?

If A invests $40,000 and B invests $60,000 in a business, and they share the pro

Practice Questions

Questions & Step-by-Step Solutions

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