Three business partners Mogambi, Ouko and Memba contributed Sh. 600,000, Sh. 400,000 and Sh. 800,000 respectively to start a business of matatu plying Kisii – Kisumu...

Three business partners Mogambi, Ouko and Memba contributed Sh. 600,000, Sh. 400,000 and Sh. 800,000
respectively to start a business of matatu plying Kisii – Kisumu route. The matatu carries 14 passengers with each
paying Sh. 250. The matatu makes 2 round trips everyday and is ever full. Each day Sh. 6000 is used to cover running
costs and wages.
(a) Calculate their profit per day.
(b) The matatu works for 25 days per month and is serviced every month at a cost of Sh. 10,000. Calculate their
monthly profit in June. (1 Month)
(c) The three partners agreed to save 40% of the profit, 24% to be shared in the ratio of their contribution and the
remaining to be shared equally. Calculate Ouko’s share in the month of July.
(d) The matatu developed a mechanical problem and they decided to sell it through an agent who charged a
commission of 5% on the selling price. Each partner received Sh. 475,000 from the agent after he had taken his
commission. Determine the price at which the agent sold the matatu.

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sharon kalunda answered the question on May 10, 2019 at 06:07

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