Friday, 18 November 2011

Profit & Loss

A and B invested capitals in the ratio of 3: 5 to start a business. A is the working partner and B is the sleeping partner. What percentage of total profit may be given as a salary to A, so that the ratio of the profit earned by them is 3: 2?
1)38%             2)24%             3)36%             4)40%             5) None of the above
Solution follows here:
Let the total profit be 100

Profit should be divided in the ratios of capitals. This profit is supposed to be given to A and B in the ratio 3:5. But as A is working partner and B is sleeping partner, A gets an additional amount in the form of salary. Out of the profit 100, let an additional amount ‘x’ be given to A as salary. After this the profit ratio is changed to 3:2. The total amount received by A can be expressed as given below:
Supposed profit of A + Salary of A = Actual Profit of A 
(3/8) (100-x) + x = (3/5)(100)
On solving, we get x=36

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