Question

Washington Construction built 13 ranch houses for $117,000 each. From the sale of these houses, Washington received $2,100,000.
 

a. How much gross profit did Washington make on the houses?

b. If the four partners of Washington Construction split all profits equally, how much will each partner receive?

Answer 1

Cost of building=13×117,000=$1,521,000.

(a) Profit=Sales-Cost=2,100,000-1,521,000=$579,000.

(b) Each partner gets 579,000/4=$144,750.