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A, b and c form a company. A invests half of c expecting a return of 10%. B invests three-fourths of c, expecting a return of 15% on it. C invests ` 3000 and the profit of the firm is 25%. How much would bs share of profit be more than that of as share if b gets an additional 8% for managing the business? (assume that their expectations with respect to returns on capital invested are met before profit is divided in the ratio of capitals invested). |
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Answer» A, b and c form a company. A invests half of c expecting a return of 10%. B invests three-fourths of c, expecting a return of 15% on it. C invests ` 3000 and the profit of the firm is 25%. How much would bs share of profit be more than that of as share if b gets an additional 8% for managing the business? (assume that their EXPECTATIONS with respect to returns on CAPITAL invested are met before profit is divided in the ratio of capitals invested). Explanation: C Invests = 3000 A Invests= 1500 ( Half of C's INVESTMENT) B Invests = 2250 ( Three fourth of C's investment) Return on Investment A R.O.I = Investment + 10% = 1500 + 150 = 1650 B R.O.I = Investment + 15 % + 8% = 2250 + 337.5 + 180 = 2767.5 The Total Investment = 6750 Profit =25 % = 1687.5 B's Share of Profit = 517.5 A's Share of Profit = 150 The Difference = 367.5 |
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