Total Profit of the business partners for the year

In summary, total profit is the amount of money a business has left after subtracting all expenses from its total revenue. It is an important measure of a company's financial success and can be calculated by subtracting total expenses from total revenue. Business partners are interested in total profit as it reflects the health of the business and can determine the amount of dividends or reinvestment. Several factors can affect total profit, including changes in sales, expenses, market conditions, competition, and operational efficiency. Businesses can increase their total profit by increasing sales, reducing expenses, improving operational efficiency, expanding into new markets, introducing new products or services, and implementing cost-saving measures.
  • #1
mathdad
1,283
1
Three business partners, Q, R, and S, agree to divide their total profit for a certain year in the ratios: 2 : 5 : 8, respectively. If Q's share was 4,000, what was the total profit of the business partners for the year?

My Reasoning:

1. The variables listed represent 3 people.
2. The word ratio means that there are fractions involved.

My problem is making enough sense of the words
to help me set up the proper equation. I know that Q's share is 4000. No share data has been given for R and S.

I decided to let x be the total profit that we need to find. I came up with the equation 2x + 5x + 8x = 4000. If this equation is incorrect, why is it wrong?
 
Last edited:
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  • #2
RTCNTC said:
Three business partners, Q, R, and S, agree to divide their total profit for a certain year in the ratios: 2 : 5 : 8, respectively. If Q's share was 4,000, what was the total profit of the business partners for the year?

My Reasoning:

1. The variables listed represent 3 people.
2. The word ratio means that there are fractions involved.

My problem is making enough sense of the words
to help me set up the proper equation. I know that Q's share is 4000. No share data has been given for R and S.

If I let x be the total profit that we need to find. I came up with the equation 2x + 5x + 8x = 4000. If this equation is incorrect, why is it wrong?
Since Q's share = 4000, then 2x = 4000, so x = 2000 : HOKAY?!
 
  • #3
RTCNTC said:
Three business partners, Q, R, and S, agree to divide their total profit for a certain year in the ratios: 2 : 5 : 8, respectively. If Q's share was 4,000, what was the total profit of the business partners for the year?

My Reasoning:

1. The variables listed represent 3 people.
2. The word ratio means that there are fractions involved.

My problem is making enough sense of the words
to help me set up the proper equation. I know that Q's share is 4000. No share data has been given for R and S.

If I let x be the total profit that we need to find. I came up with the equation 2x + 5x + 8x = 4000. If this equation is incorrect, why is it wrong?
It's not a matter of it being "incorrect", it simply makes no sense because you haven't said what "x" represents! I suspect you are saying since they are in "ratios: 2: 5: 8", thens if Q is 2 times anything, then R is 5 times that "something" and S is 8 times that something. But then "2x+ 5x+ 8x" is to total or Q, R, and S, not just Q itself. You are told that Q= 4000 NOT the total. If Q is 2x and Q is 4000 then 2x= 4000 so x= 2000. Then R= 5(2000) and S= 8(2000)
 
  • #4
If x = 2000, then R = 5(2000) or 10,000 and S = 8(2000) or 16,000.

I know that Q's share is 4000.

Let TP = total profit

TP = Q + R + S

TP = 4,000 + 10,000 + 16,000

TP = 4,000 + 26,000

TP = 30,000
 
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What is the definition of total profit?

Total profit is the amount of money that remains after all expenses have been subtracted from the total revenue of a business. It is a measure of the overall financial success of a company.

How is total profit calculated?

Total profit is calculated by subtracting all expenses, including operating costs, taxes, and interest, from the total revenue of a business. The formula for total profit is: Total Profit = Total Revenue - Total Expenses.

Why is total profit important for business partners?

Total profit is important for business partners because it shows the financial health and success of the business. It also determines the amount of money that can be distributed to partners as dividends or reinvested into the company for growth.

What factors can affect the total profit of a business?

There are several factors that can affect the total profit of a business, including changes in sales, expenses, and market conditions. Other factors such as competition, economic trends, and operational efficiency can also impact total profit.

How can a business increase its total profit?

A business can increase its total profit by increasing sales, reducing expenses, and improving operational efficiency. Other strategies include expanding into new markets, introducing new products or services, and implementing cost-saving measures.

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