B receives 1/8th of the profit of business as wages and the rest is divided between B and A in proportion to their capitals of $6000 and $8000 respectively. If in 1 year, B receives $1000 totally, what does A receive?
The Usual Method
Assuming the total profit = ‘p’
Hence, 1/8th of profit =
Balance profit =
This balance profit is divided in the ratio of investments i.e. 6000 : 8000 = 3 : 4
Hence total earnings of A =
Similarly, total earnings of B = = $1000
p = $2000
Hence, A’s share = = $1000
Estimated Time to arrive at the answer = 60 seconds.
Visualize that the total profit is divided in 8 parts, of which 1 part goes to B as wages and the remaining 7 parts are divided between B and A in the ratio of 6000 : 8000 or 3 : 4. Thus B receives 3 more parts of the profit and A receives 4 parts. Thus B receives in total 3 + 1 = 4 parts of the profit which is same as 4 parts received by A. Thus A receives the same money as B receives i.e. $1000.
Estimated Time to arrive at the answer = 15 seconds.