A and B contribute 140000 and 180000 respectively in a business partnership of the profit A receive 20% as a manager and the rest is shared in the ratio of the capital what is the ratio of A total share of the profit to B
Capital invested by A and B: $140,000 and $180,000, respectively
Capital ratio: A:B = 140,000:180,000 = 14:18 = 7:9
Therefore, A's and B's shares of profit are , respectively
After A receives 20%, or .2 of profit for his managerial role, 80% (.8) of profit remains
Of this remaining 80% or .8, A receives:
Of this remaining 80% or .8, B receives:
Total A receives: 29% + 35% = 55% of profit.
Therefore, ratio of A's share of profit to B's share of profit is 55:45, or 11:9