  # A and B invest in a business in the ratio 3 : 2. If 5% of the total profit goes to charity and A’s share is Rs.855, the total profit is: (a). Rs. 1425 (b). Rs. 1500 (c). Rs. 1537.50 (d). Rs. 1576

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Updated on: September 25th, 2023 The total profit is Rs. 1500. Profit is a particular amount of monetary benefit occurred in a business surpassing the expenses, costs, and taxes involved in sustaining the business or any said activity.

Profit is the financial gain obtained when the selling price exceeds the cost price, while loss occurs when the selling price is lower than the cost price. Profit and loss can be calculated by subtracting the cost price from the selling price or vice versa.

Given that:

A and B invest in a business in a ratio of 3:2

5% of the total profit goes to charity.

A’s share is Rs. 885

We have to find the total profit.

Table of content Profit occurs when the selling price of a good surpasses the cost price of the good. To find the total profit of a business one must use the formula –

Profit = S.P. – C.P.

Here,

S.P. denotes Selling Price

C.P. denotes Cost Price

The cost price (CP) refers to the original price at which a product or item is acquired or produced, encompassing all associated expenses such as manufacturing, materials, and overhead costs. On the other hand, the selling price (SP) represents the price at which the product is sold to customers. It includes the cost price and a margin of profit.

Solution

Let the total profit be Rs. 100

The amount given to charity = 5/100 × 100 = Rs. 5

Remaining amount = 100 – 5 = Rs. 95

A’s share = 3/(3+2) x 95

= 3/5 x 95

= 3 x 19

= Rs. 57

When total profit is Rs. 100, A’s share is Rs. 57

When A’s share is Rs. 855, total profit = 100 x 855/57

= 100 x 15

= Rs. 1500

Therefore, the total profit is Rs. 1500

Summary

## A and B invest in a business in the ratio 3: 2. If 5% of the total profit goes to charity and A’s share is Rs.855, the total profit is:

A and B invest in a business in a ratio of 3:2. If 5% of the total profit goes to charity and A’s share is Rs.855, the total profit is Rs. 1500. Profit is the financial gain made by selling a product at a price higher than its cost price. It is the difference between the selling price and the cost price.

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