College Math Placement Practice Test

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Get ready for your College Math Placement Test. Test your knowledge with quizzes, flashcards, and problem-solving, complete with hints and explanations. Start your preparation today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What was Lynh’s total profit if each of the 12 employees earned $2,300 from a 5% profit-sharing distribution?

$216,000
$138,000
$552,000
$55,200

The correct answer is: $552,000

To determine Lynh's total profit based on the profit-sharing distribution to the employees, it's important to first calculate the total amount distributed among the employees. Given that there are 12 employees and each earned $2,300, the total payout can be calculated by multiplying the number of employees by the amount each earned: Total payout = Number of employees × Amount per employee Total payout = 12 × $2,300 = $27,600 This total payout represents 5% of the total profits Lynh made. To find the total profit, we can set up the equation using the relationship between the profit shared and the total profit: Total profit × 5% = Total payout Total profit × 0.05 = $27,600 Now, to find the total profit, divide both sides of the equation by 0.05: Total profit = $27,600 / 0.05 Total profit = $552,000 Thus, Lynh's total profit is $552,000, which corresponds to the choice listed. Understanding this helps in grasping how profit-sharing works in relation to the overall profits of a business.