Question

1. two business partners, tom & jerry, bought a business for \\$158 000 and sold it for 25\\% profit.

the profit was to be shared between tom and jerry in the ratio of 3: 2.
determine how much profit, in dollars, each person receives?
show working out.

Explanation:

Calculate total profit

Find the profit amount.

$$ \text{Profit} = \$158,000 \times 25\% $$

$$ \text{Profit} = \$158,000 \times 0.25 = \$39,500 $$

Determine total ratio parts

Find the total parts.

$$ \text{Total Parts} = 3 + 2 = 5 $$

Calculate value per part

Divide profit by parts.

$$ \text{Value per Part} = \frac{\$39,500}{5} = \$7,900 $$

Calculate Tom's share

Multiply Tom's parts.

$$ \text{Tom's Share} = 3 \times \$7,900 = \$23,700 $$

Calculate Jerry's share

Multiply Jerry's parts.

$$ \text{Jerry's Share} = 2 \times \$7,900 = \$15,800 $$

Answer:

Tom receives \$23,700 and Jerry receives \$15,800.