A ₹36,000 annual bonus is distributed among Sales, Marketing, and Operations in a 4:5:3 ratio. Marketing uses ₹3,000 for team building and ₹1,500 for an intern, then allocates the rest to two top performers in a 5:4 ratio. How much does the top performer with the smaller share receive?
- (a)₹5,833.33
- (b)₹5,250
- (c)₹4,666.67
- (d)₹4,200
Answer
Why
Correct — C. Find Marketing's share, take out the two expenses, then split what is left.
Total ratio parts: 4 + 5 + 3 = 12
Marketing's share: 5⁄12 × 36,000 = ₹15,000
Subtract the expenses: 15,000 − 3,000 − 1,500 = ₹10,500
Parts for the two performers: 5 + 4 = 9
Smaller share: 4⁄9 × 10,500 = 42,000⁄9 = ₹4,666.67 → option (c)
Why the others are wrong
- (a)₹5,833.33 — ₹5,833.33 is the larger share, 5⁄9 × 10,500. The question asks for the performer with the smaller share, who gets the 4 parts.
- (b)₹5,250 — ₹5,250 is half of ₹10,500, an equal split. The 5 : 4 ratio gives unequal shares of ₹5,833.33 and ₹4,666.67.
- (d)₹4,200 — ₹4,200 is 4⁄10 of ₹10,500, as if the ratio had 10 parts. But 5 + 4 = 9, so each part is 10,500 ÷ 9 ≈ ₹1,166.67.
Concept
Share = (its ratio parts ÷ total parts) × amount. When the total is known, start by adding the parts.
Here the split happens in two stages, with a subtraction between them. Marketing's 5 of 12 parts is ₹15,000, and just the ₹10,500 left after ₹4,500 of expenses is divided 5 : 4.
Sales gets ₹12,000 and Operations ₹9,000. Neither figure is needed after the first step, but they confirm the split: 12,000 + 15,000 + 9,000 = 36,000.
Key facts
- In a ratio a : b : c, one part = total ÷ (a + b + c).
- 36,000 ÷ 12 = ₹3,000 per part, so Marketing's 5 parts are ₹15,000.
- The two shares of a split add back to the amount split: ₹5,833.33 + ₹4,666.67 = ₹10,500.
Study next
Common traps
- Splitting ₹15,000 in 5 : 4 before subtracting the ₹4,500 of expenses.
- Picking the 5-part share. The smaller share is the 4 parts, 4⁄9 of the remainder.
Share = parts ÷ total parts × amount also settles 12 Sep 2024, 09:00, Quant Q.15: ₹1,200 in 2 : 1 : 3 is ₹400, ₹200 and ₹600, so 3 × 600 + 2 × 200 = ₹2,200.
11 Sep 2024, 09:00, Quant Q.25 starts from a difference instead: Q − R = 9 − 2 = 7 parts = ₹560, so one part is ₹80 and S's 3 parts are ₹240.
Related PYQs
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