Question

Carter and Isabella run a carwash business. They split the revenue 50/50. They are deciding on if they should join forces with Carla's carwash.If they join with Carla, the combined carwash will make $2400 more per month, but they'll have to split revenue equally (33.3/33.3/33.3). On an average month, Carter and Isabella's carwash makes $6000. How much more or less would Carter or Isabella individually make if they merged with Carla's carwash? This question is required. *A) $200 lessB) $400 moreC) $200 moreD) $400 less

Answer 1

ANSWER

A) $200 less

EXPLANATION

To know how much more or less Isabelle or Carter will make if they merged with Carla's carwash, we have to find the difference between how much each of them makes now and how much they will make if they join forces with Carla.

Right now, Isabella and Carter make $6,000 a month. To find how much each of them makes, divide by 2 since they share the money 50/50 i.e. equally:

$\begin{gathered} \frac{6000}{2} \\ \Rightarrow\ 3,000 \end{gathered}$

They make $3,000 each.

If they join forces with Carla, they will make $2,400 more per month. That is:

$\begin{gathered} \ 6,000+\ 2,400 \\ \Rightarrow\ 8,400 \end{gathered}$

To find how much each of them will make, divide by 3 since they split it equally i.e. 33.3/33.3/33.3:

$\begin{gathered} \frac{8,400}{3} \\ \Rightarrow\ 2,800 \end{gathered}$

Now, we have to find the difference between the values:

$\begin{gathered} \ 2,800-\ 3,000 \\ \Rightarrow-\ 200 \end{gathered}$

As we can see, they will lose $200 per month if they join forces with Carla.

Hence, they will individually make $200 less if they merged with Carla's carwash.

The answer is option A.