Three partners Mutua, Muthoka and Mwikali contributed Sh. 600,000, Sh. 400,000 and Sh. 800,000 respectively

Three partners Mutua, Muthoka and Mwikali contributed Sh. 600,000, Sh. 400,000 and Sh. 800,000
respectively to start a business of a matatu plying Mbumbuni – Machakos route. The matatu carries 14
passengers with each paying Sh. 250. The matatu makes two round trips each day and ever full. Each day
Sh. 6000 is used to cover running costs and wages.

(a) Calculate their net profit per day.
(b) The matatu works for 25 days per month and is serviced every month at a cost of KSh.10, 000. Calculate their monthly profit in June.
(c) The three partners agreed to save 40% of the profit, 24% to be shared in the ratio of their contribution. Calculate Muthoka’s share in the month of July
(d) The matatu developed mechanical problems and they decided to sell it through an agent who charged a commission of 5% on selling price. Each partner received KSh. 475,000 from the agent after he had taken his commission. Determine the price at which the agent sold the matatu.

Answers

Wilfykil answered the question on September 6, 2019 at 05:48

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