Multiple choice

Aahaana and Bianca start a new businessin profit sharing ratio of 60:40. Aahaana isto put in Rs. 1,00,000/- as the initialinvestment and Bianca was to take care ofeach client @ Rs. 400/- per client. If theycan take a maximum of only up to 500clients in the first year and Aahaana wantsto recover her investment in the first yearitself, then what shall be the minimumnumber of clients that the two partnersneed to get, for the business to getprofitable, provided that each client needsto pay Rs. 2,000/- for the product thatAahaana and Bianca plan to sell ?

  1. 45

  2. 63

  3. 67

  4. 70

  5. 55
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For n clients, revenue is Rs. 2000n and Bianca's client-related cost is Rs. 400n. After the Rs. 1,00,000 investment, the business profit is 1600n - 1,00,000. For profit, 1600n > 1,00,000, giving n > 62.5, so the minimum whole number is 63.

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