Maria Martinez and her sister, Christina, are planning to operate a small day care center together. Maria originally invested $24,000 in the business, and Christina invested $8,000. Maria and Christina decide to divide all of the profits and share all of the losses using a fixed ratio. If the ratio agreed upon is in proportion to their original investment, what would be Christina's share of a
$60,000 end-of-year profit? (Hint: The original total investment was $32,000, which includes $8,000 from Christina and $24,000 from Maria. Christina's $8,000 is one-fourth, or 25 percent, of the total.)
8,000/32,000 = .25. Christina invested 25% of the total initial investment, therefore she will receive 25% of the $60,000 end of year profit. $60,000*.25 = $15,000. Christina's hare of the profit is: B. $15,000.
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