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Calculate the daily revenue.

Business/Management

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Answers

3 parts
a

Sh. 1,000\text{Sh. } 1,000

b

Sh. 15,000\text{Sh. } 15,000

c

Sh. 800\text{Sh. } 800

Step-by-step solution

9 steps

Part a· 2 steps

Calculate their net profit per day.

  1. Calculate the daily revenue.

    The matatu carries 14 passengers, each paying Sh. 250. It makes two round trips daily.

    Revenue per trip=14 passengers×Sh. 250/passenger=Sh. 3,500\text{Revenue per trip} = 14 \text{ passengers} \times \text{Sh. } 250/\text{passenger} = \text{Sh. } 3,500 Daily Revenue=2 trips×Sh. 3,500/trip=Sh. 7,000\text{Daily Revenue} = 2 \text{ trips} \times \text{Sh. } 3,500/\text{trip} = \text{Sh. } 7,000

  2. Calculate the net profit per day.

    Daily running costs and wages are Sh. 6,000.

    Net Profit per Day=Daily Revenue−Daily Costs\text{Net Profit per Day} = \text{Daily Revenue} - \text{Daily Costs} Net Profit per Day=Sh. 7,000−Sh. 6,000=Sh. 1,000\text{Net Profit per Day} = \text{Sh. } 7,000 - \text{Sh. } 6,000 = \text{Sh. } 1,000

    The net profit per day is Sh. 1,000\boxed{\text{Sh. } 1,000}.

Part b

Sh. 15,000\text{Sh. } 15,000

Calculate their monthly profit in June.

  1. Calculate the profit from operations for 25 days.

    The matatu works for 25 days per month.

    Profit from Operations=Net Profit per Day×Number of Working Days\text{Profit from Operations} = \text{Net Profit per Day} \times \text{Number of Working Days} Profit from Operations=Sh. 1,000/day×25 days=Sh. 25,000\text{Profit from Operations} = \text{Sh. } 1,000/\text{day} \times 25 \text{ days} = \text{Sh. } 25,000

  2. Calculate the monthly profit in June.

    The matatu is serviced every month at a cost of Sh. 10,000.

    Monthly Profit in June=Profit from Operations−Servicing Cost\text{Monthly Profit in June} = \text{Profit from Operations} - \text{Servicing Cost} Monthly Profit in June=Sh. 25,000−Sh. 10,000=Sh. 15,000\text{Monthly Profit in June} = \text{Sh. } 25,000 - \text{Sh. } 10,000 = \text{Sh. } 15,000

    Their monthly profit in June is Sh. 15,000\boxed{\text{Sh. } 15,000}.

Part c

Sh. 800\text{Sh. } 800

Calculate James's share in the month of July.

  1. Determine the ratio of contributions.

    Jared: Sh. 600,000
    James: Sh. 400,000
    Jack: Sh. 800,000
    The ratio of contributions is 600,000:400,000:800,000600,000 : 400,000 : 800,000.
    Simplifying the ratio by dividing by 200,000:

    Ratio=3:2:4\text{Ratio} = 3 : 2 : 4

    The sum of the ratio parts is 3+2+4=93 + 2 + 4 = 9.
    James's share of the ratio is 29\frac{2}{9}.

  2. Determine the total profit for July.

    Assuming the monthly profit in July is the same as June:

    Total Profit for July=Sh. 15,000\text{Total Profit for July} = \text{Sh. } 15,000

  3. Calculate the portion of profit to be shared in the ratio of contributions.

    24% of the profit is to be shared in the ratio of their contribution.

    Amount for Ratio Sharing=0.24×Total Profit for July\text{Amount for Ratio Sharing} = 0.24 \times \text{Total Profit for July} Amount for Ratio Sharing=0.24×Sh. 15,000=Sh. 3,600\text{Amount for Ratio Sharing} = 0.24 \times \text{Sh. } 15,000 = \text{Sh. } 3,600

  4. Calculate James's share from this portion.

    James’s Share=James’s Ratio Fraction×Amount for Ratio Sharing\text{James's Share} = \text{James's Ratio Fraction} \times \text{Amount for Ratio Sharing} James’s Share=29×Sh. 3,600=Sh. 800\text{James's Share} = \frac{2}{9} \times \text{Sh. } 3,600 = \text{Sh. } 800

    James's share in the month of July is Sh. 800\boxed{\text{Sh. } 800}.

Part d· 1 step

Calculate the selling price of the matatu.

  1. Calculate the total amount received by the partners.

    Each

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