Four people started a business by investing the following amounts: A:$30000,B:$40000,C:$60000,D:$70000. They agreed hat A being the manager should get one third of the profits, the rest being divided between all four in proportion to their investment.

A. Draw a pie chart showing the ratio of their investments.
B. Draw a pie chart to show how the profit was divided

1 answer

To draw pie charts representing the investments and the profit distribution of A, B, C, and D, let's start by calculating the necessary values step by step.

A. Investment Ratios

  1. Total Investment: \[ \text{Total Investment} = A + B + C + D = 30000 + 40000 + 60000 + 70000 = 200000 \]

  2. Individual Investment Ratios:

    • A's Ratio: \( \frac{30000}{200000} = 0.15 \) (15%)
    • B's Ratio: \( \frac{40000}{200000} = 0.20 \) (20%)
    • C's Ratio: \( \frac{60000}{200000} = 0.30 \) (30%)
    • D's Ratio: \( \frac{70000}{200000} = 0.35 \) (35%)

Pie Chart for Investments

In a pie chart, each section will represent the proportion of each person's investment:

  • A: 15%
  • B: 20%
  • C: 30%
  • D: 35%

B. Profit Distribution

Let's assume the total profit for the business is \(P\).

  1. Manager’s Share: A receives one-third of the total profit: \[ A's \text{ Share} = \frac{1}{3}P \]

  2. Remaining Profit: \[ \text{Remaining Profit} = P - A's \text{ Share} = P - \frac{1}{3}P = \frac{2}{3}P \]

  3. Distribution of Remaining Profit Among A, B, C, and D: The remaining profit is divided in proportion to their investments. The total investment proportion was already calculated, so we will use these ratios to divide the remaining profit.

  4. Proportional Shares of Remaining Profit: Let \(X\) be the total amount (in terms of profit) distributed among A, B, C, and D based on their investments.

  • Total ratio of just the investments (without A's share): 20% (B) + 30% (C) + 35% (D) = 85%
  • The shares out of remaining profit:
    • B's Share of Remaining Profit: \( \frac{40000}{200000} \times \frac{2}{3}P = \frac{2}{3} \times 0.20P = \frac{2}{15}P \)
    • C's Share of Remaining Profit: \( \frac{60000}{200000} \times \frac{2}{3}P = \frac{2}{3} \times 0.30P = \frac{1}{5}P \)
    • D's Share of Remaining Profit: \( \frac{70000}{200000} \times \frac{2}{3}P = \frac{2}{3} \times 0.35P = \frac{7}{30}P \)

Putting together all shares:

  • A's total share = \(\frac{1}{3}P + \frac{2}{15}P\)
  • B's total share = \(\frac{2}{15}P\)
  • C's total share = \(\frac{1}{5}P = \frac{3}{15}P\)
  • D's total share = \(\frac{7}{30}P = \frac{14}{60}P = \frac{7}{30}P\)

Pie Chart for Profit Distribution

Now, let's summarize:

  • A's total share = \(\frac{1}{3}P + \frac{2}{15}P\)
  • B's share = \(\frac{2}{15}P\)
  • C's share = \(\frac{3}{15}P\)
  • D's share = \(\frac{14}{60}P\)

The representation in percentages based on \(P\):

  • A's Share: Total of A's share will be \( (A's \text{ share from profit}) = 33.33 + 13.33 = 46.67% \)
  • B's Share: 13.33%
  • C's Share: 20%
  • D's Share: 23.33%

Drawing the Pie Charts

  1. For the investment pie chart, you would have:

    • A (15%)
    • B (20%)
    • C (30%)
    • D (35%)
  2. For the profit distribution pie chart, you would have:

    • A (46.67%)
    • B (13.33%)
    • C (20%)
    • D (23.33%)

You can use graphing software or tools to create these pie charts based on the proportions above. If you do this manually, the percentages will map directly to angles: \(360 \times \text{percentage}\).