Questions :
A invests ₹18,000, while B invests ₹27,000 in a business. A receives an additional 25% of the total profit as a management fee. The total profit at the end of the year is ₹50,000. What is A’s total share of the profit?
Options :
- ₹51,200
- ₹41,200
- ₹27,500
- ₹21,200
correct answer : c)
Explanation :
A receives a management fee equal to 25% of the total profit.
Management fee of A = (25/100) × ₹50,000
= ₹12,500
Remaining profit after management fee = ₹50,000 − ₹12,500
= ₹37,500
The investment ratio of A and B is:
₹18,000 : ₹27,000
= 2 : 3
A’s share from the remaining profit = (2/5) × ₹37,500
= ₹15,000
Therefore, A’s total share of profit = Management fee + Share from remaining profit
= ₹12,500 + ₹15,000
= ₹27,500
Therefore, the correct answer is option (c) ₹27,500. The amounts ₹51,200, ₹41,200, and ₹21,200 are incorrect because they do not correctly account for both the management fee and the profit-sharing ratio based on investments.