The GMAT Practice problem is an arithmetic question from the topic ratio and proportion
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?
The correct choice is (E) and the correct answer is $3000
Let the profit made during the year be $3x
Therefore, $x would have been shared equally and the remaining $2x would have been shared in the ratio 7 : 3.
i.e., 70% of 2x would go to Mary and 30% of 2x would go to Mike.
Hence, Mary would get (70 - 30)% of 2x more than Mike
Or 40% of 2x = $800
or 2x = 2000.
Hence, the profit made by the company during the year $3x = $3000.