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A, B and C are partners. A receives 2/3 of profit, B and C
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15 Apr 2019, 06:21
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A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B a. $600 b. $850 c. $350 d. $1100 e. $2100 Posted from my mobile device
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A, B and C are partners. A receives 2/3 of profit, B and C
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15 Apr 2019, 06:31
jackfr2 wrote: A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B
a. $600 b. $850 c. $350 d. $1100 e. $2100
Posted from my mobile device Let the cost = 100x i.e. Profit = 5% of 100x = 5x A's profit = (2/3)*5x B's profit = (1/2)*(1/3)*5x = (1/6)*5x C's profit = (1/2)*(1/3)*5x = (1/6)*5x New Profit = 7% of 100x = 7x i..e. Now A's profit = (2/3)*7x
Change in A's profit = (2/3)*7x  (2/3)*5x = (4/3)x
Given, (4/3)*x = $400
i.e. x = $300
B's profit = (1/6)*7x = 7*300/6 = $350 Answer: Option C
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A, B and C are partners. A receives 2/3 of profit, B and C
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Updated on: 15 Apr 2019, 09:33
jackfr2 wrote: A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B
a. $600 b. $850 c. $350 d. $1100 e. $2100
Posted from my mobile device let profit be x so for A given profit is 2/3 it receives so 1.07x*2/31.05x*2/3 = 400 or say 2x*.02 =1200 x= 30,000 now we need to determine profit of B @ 7% so 0.07*30,000 * 1/3* 1/2 = 350$ IMO C
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Originally posted by Archit3110 on 15 Apr 2019, 07:57.
Last edited by Archit3110 on 15 Apr 2019, 09:33, edited 1 time in total.



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Re: A, B and C are partners. A receives 2/3 of profit, B and C
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15 Apr 2019, 09:24
Archit3110 wrote: jackfr2 wrote: A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B
a. $600 b. $850 c. $350 d. $1100 e. $2100
Posted from my mobile device let profit be x so for A given profit is 2/3 it receives so 1.07x*2/31.05x*2/3 = 400 or say 2x*.02 =1200 x= 30,000 so A share ; 30,000 * 2/3 = 20,000 left with 10,000 which is shared equally ; 5,000 each GMATinsight ; sir where am I going wrong ? I did not assume value of interest like in your case , i solved using variables not sure where i got solution wrong please advise.. There are more than one mistake if x is the profit in first case then 1.05x has no meaning as x itself must be 5% of cost that's why I started with assumption of cost as 100x and not profit. second mistake is that the initial profit sharing of B is not what question is asking. Question is asking the later profit sharing of B i.e. 0.07x is the profit in later case as per your calculation assuming that x is the cost0.07x*(1/3)*(1/2) is teh profit sharing of B = (7/100)*(1/6)*30000 = $350 I hope you it helps!!! Archit3110
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Re: A, B and C are partners. A receives 2/3 of profit, B and C
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15 Apr 2019, 09:30
GMATinsight ; thanks a lot sir, understood where I went wrong... wording of question was little tricky especially end part ... GMATinsight wrote: Archit3110 wrote: jackfr2 wrote: A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B
a. $600 b. $850 c. $350 d. $1100 e. $2100
Posted from my mobile device let profit be x so for A given profit is 2/3 it receives so 1.07x*2/31.05x*2/3 = 400 or say 2x*.02 =1200 x= 30,000 so A share ; 30,000 * 2/3 = 20,000 left with 10,000 which is shared equally ; 5,000 each GMATinsight ; sir where am I going wrong ? I did not assume value of interest like in your case , i solved using variables not sure where i got solution wrong please advise.. There are more than one mistake if x is the profit in first case then 1.05x has no meaning as x itself must be 5% of cost that's why I started with assumption of cost as 100x and not profit. second mistake is that the initial profit sharing of B is not what question is asking. Question is asking the later profit sharing of B i.e. 0.07x is the profit in later case as per your calculation assuming that x is the cost0.07x*(1/3)*(1/2) is teh profit sharing of B = (7/100)*(1/6)*30000 = $350 I hope you it helps!!! Archit3110
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A, B and C are partners. A receives 2/3 of profit, B and C
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15 Apr 2019, 15:48
I didn't use algebra because I couldn't create an equation.
Increasing from 5% to 7% = 400 usd, that means that the value of 2% is 400 usd.
So the total profit of A would be = 1,400 (7%) usd and this represent \(\frac{2}{3}\) of the total.
\(\frac{2}{3}\) = 1,400
So 2,100 usd (\(\frac{2}{3}=1400\) & \(\frac{1}{3}=700\))
So B & C will have to divide 700 between them.
350
C



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A, B and C are partners. A receives 2/3 of profit, B and C
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16 Apr 2019, 02:44
jackfr2 wrote: A, B and C are partners. A receives 2/3 of profit, B and C dividing the remaining profit equally. A's income is increased by $400 when the rate of profit rises from 5% to 7%. Find the profit of B
a. $600 b. $850 c. $350 d. $1100 e. $2100
Posted from my mobile device In order to determine the ratio in which the profit is split, we can assume a simple number to be the total profit. Let that be $300  A will receive \(\frac{2}{3}*300 = $200\) B and C get an equal share of the remaining $100. Ratio of profits is 4:1:1We are told that for a 2% increase in profit, the income of A increases by $400. Tthe total income of the partners increases by $600(ratio is 4:1:1). The total amount on which the profit is generated is \(\frac{$600}{2}*100 = $30000\). Therefore, the total profit that B takes home is \(\frac{1}{6}*\frac{7}{100}*30000\) = $350(Option C)
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A, B and C are partners. A receives 2/3 of profit, B and C
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16 Apr 2019, 02:44






