A, B, and C invest 63000, 56000, and 84000 respectively to start a business. After one year, the profit is distributed in the ratio of their investments. If C's share of profit is Rs.54000, find the total profit earned.
Answer & explanation
Correct answer: option 2
Profit sharing ratio of A, B, C = 63000: 56000: 84000
Profit sharing ratio A, B, C : 9: 8: 12
C's share of profit = \(\frac{12 }{29 }\)
Therefore, C's share of profit that is 54000 stands for \(\frac{12 }{29 }\)
Total profit earned = \(\frac{\text{54000 x 29}}{12}\)
Total profit earned = 130500