BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

profits

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 2326
Joined: Mon Jul 28, 2008 3:54 amFollowed by: 2 members
Thanked: 173 times
GMAT Score:710
by gmatmachoman » Fri May 28, 2010 3:25 am
Mary and Mike enter into a partnership by investing $700 and $300 respectively. At the end of one year, they
divided their profits such that a third of the profit is divided equally for the efforts they have put into the business
and the remaining amount of profit is divided in the ratio of the investments they made in the business. If Mary
received $800 more than Mike did, what was the profit made by their business in that year?

A. $2000
B. $6000
C. $4000
D. $1333
E. $3000
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
Senior | Next Rank: 100 Posts
Posts: 85
Joined: Sat Aug 15, 2009 4:36 am
Thanked: 19 times

edit

by gmatjedi » Fri May 28, 2010 3:41 am
let x= profit

2/3x is profit split based on level of contribution
mary contributes 7/10 of investment
mike contributes 3/10 of investment

mary: (2/3)(7/10)x
mike: (2/3)(3/10)x

mike+800=mary

6x/30+800=14x/30

x=3000 profit
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 610
Joined: Fri Jan 15, 2010 12:33 amFollowed by: 2 members
Thanked: 47 times

by kstv » Fri May 28, 2010 3:47 am
Profit = 30 x
1/3 = 10x so share of Mary and Mike = 5x each
Investement Ratio of Mary : Mike = 7 : 3 so 20x is divided in 14x : 6x
Mary - Mike = 19x- 11x = 800

IMO E
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 1460
Joined: Tue Dec 29, 2009 1:28 amFollowed by: 7 members
Thanked: 135 times

by selango » Fri May 28, 2010 3:53 am
Lets x be the profit.

X/3 is divided equally.

So each will get x/6

remaining 2x/3 to be divided with ratio7:3


-->Mary ratio 7x/15 and mike ratio 3x/15


Adding,

x/6+7x/15=x/6+3x/15+800

x=3000
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 576
Joined: Sat Mar 13, 2010 8:31 pmFollowed by: 1 member
Thanked: 97 times

by liferocks » Fri May 28, 2010 4:11 am
diff in profit will come for the 2/3 which marry :mike will divide in the ratio of 7:3 ..so merry will get 4 /10 extra than mike

now (4/10 )*(2/3) of profit=800

or profit =3000
Ans option D
"If you don't know where you are going, any road will get you there."
Lewis Carroll
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 1462
Joined: Thu Apr 09, 2015 9:34 amFollowed by: 22 members
Location: New York, NY
Thanked: 39 times

by Jeff@TargetTestPrep » Fri Jan 05, 2018 10:12 am
gmatmachoman wrote:Mary and Mike enter into a partnership by investing $700 and $300 respectively. At the end of one year, they divided their profits such that a third of the profit is divided equally for the efforts they have put into the business and the remaining amount of profit is divided in the ratio of the investments they made in the business. If Mary received $800 more than Mike did, what was the profit made by their business in that year?

A. $2000
B. $6000
C. $4000
D. $1333
E. $3000
Since Mary and Mike invest $700 and $300, respectively, into the partnership, they will get 7/10 and 3/10 of the profit, respectively, after 1/3 of the profit is divided equally. In other words, Mary will get 7/10 and Mike will get 3/10 of the remaining 2/3 of the profit.

If we let x = the amount of profit in dollars, then Mary gets (1/2)(1/3)(x) + (7/10)(2/3)(x) = x/6 + 7x/15 dollars and Mike gets (1/2)(1/3)(x) + (3/10)(2/3)(x) = x/6 + x/5 dollars.

Since Mary gets $800 more than Mike, we have the following equation:

x/6 + 7x/15 = x/6 + x/5 + 800

7x/15 = x/5 + 800

Multiplying both sides by 15, we have:

7x = 3x + 12,000

4x = 12,000

x = 3,000

Answer: E

Jeffrey Miller
Head of GMAT Instruction
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Fri Jan 05, 2018 11:39 am
gmatmachoman wrote:Mary and Mike enter into a partnership by investing $700 and $300 respectively. At the end of one year, they
divided their profits such that a third of the profit is divided equally for the efforts they have put into the business
and the remaining amount of profit is divided in the ratio of the investments they made in the business. If Mary
received $800 more than Mike did, what was the profit made by their business in that year?

A. $2000
B. $6000
C. $4000
D. $1333
E. $3000
Since 1/3 of the total profit is divided equally, the $800 difference between Mary's and Mike's earnings is yielded by 2/3 of the total profit.
This $800 difference must be in the same ratio as the two investments:
700:300 = 1400:600.
The values in blue yield the required $800 difference, implying that 2/3 of the total profit = 1400+600 = 2000.
Thus, 2/3 of the correct answer choice must be equal to $2000.
Only E works:
(2/3)(3000) = 2000.

The correct answer is E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1