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# A, B and C are partners. A receives 2/3 of profit, B and C

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A, B and C are partners. A receives 2/3 of profit, B and C  [#permalink]

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15 Apr 2019, 06:21
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55% (hard)

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63% (02:47) correct 38% (03:06) wrong based on 40 sessions

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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

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Joined: 12 Sep 2017
Posts: 301
A, B and C are partners. A receives 2/3 of profit, B and C  [#permalink]

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15 Apr 2019, 15:48
4
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  [#permalink]

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15 Apr 2019, 06:31
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1
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 _________________ Prosper!!! GMATinsight Bhoopendra Singh and Dr.Sushma Jha e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772 Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi http://www.GMATinsight.com/testimonials.html ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION CEO Status: GMATINSIGHT Tutor Joined: 08 Jul 2010 Posts: 2972 Location: India GMAT: INSIGHT Schools: Darden '21 WE: Education (Education) Re: A, B and C are partners. A receives 2/3 of profit, B and C [#permalink] ### Show Tags 15 Apr 2019, 09:24 1 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*2/3-1.05x*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 cost 0.07x*(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  [#permalink]

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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*2/3-1.05x*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 _________________ If you liked my solution then please give Kudos. Kudos encourage active discussions. 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. GMAT Club Legend Joined: 18 Aug 2017 Posts: 4760 Location: India Concentration: Sustainability, Marketing Schools: INSEAD, HEC '22, IIM GPA: 4 WE: Marketing (Energy and Utilities) Re: A, B and C are partners. A receives 2/3 of profit, B and C [#permalink] ### Show Tags 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*2/3-1.05x*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 cost 0.07x*(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  [#permalink]

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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 4:1:1

We 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   [#permalink] 16 Apr 2019, 02:44
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# A, B and C are partners. A receives 2/3 of profit, B and C

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