Profits of KSh 240,000 are shared in the ratio 7 : 5. How much is the larger share?
Answer and explanation
Correct answer: D. KSh 140,000
- Step 1: Total parts = 7 + 5 = 12, so one part = 240,000 / 12 = 20,000. Step 2. Larger share = 7 x 20,000 = KSh 140,000. Answer: KSh 140,000. Why not the others: KSh 100,000: That is the smaller share. KSh 120,000: That divides the profit equally. KSh 20,000: That is the value of one part only.
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