Question

The proceeds of the business yielded a profit of $150,000. The three partners had previously agreed to divide any profits by “shares.” Partner A would receive 3 shares, Partner B would receive 5 shares and Partner C would receive 4 shares. What is the amount of a share? How much did each partner receive?

Answer 1

Amount of share = $12,500

Amount received by A = $37,500

Amount received by B = $62,500

Amount received by C = $50,000

Explanation:

Total profit = $1,50,000

No. of shares received by partner A = 3

No. of shares received by Partner B = 5

No. of shares received by Partner C = 4

Ratio of profit = 3:5:4

Amount received by A =
`(3)/(12)`×1,50,000

= $37,500

Amount received by B =
`(5)/(12)`×1,50,000

= $62,500

Amount received by C =
`(4)/(12)`×1,50,000

= $50,000

Now, for 3 shares A gets = $37,500

Amount of 1 share =
`(37,500)/(3)`

= $12,500

Hence, amount of a share = $12,500