College Math Placement Practice Test

To determine Lynh's total profit based on the profit-sharing distribution to the employees, it's important to first calculate the total amount distributed among the employees. Given that there are 12 employees and each earned $2,300, the total payout can be calculated by multiplying the number of employees by the amount each earned:

Total payout = Number of employees × Amount per employee

Total payout = 12 × $2,300 = $27,600

This total payout represents 5% of the total profits Lynh made. To find the total profit, we can set up the equation using the relationship between the profit shared and the total profit:

Total profit × 5% = Total payout

Total profit × 0.05 = $27,600

Now, to find the total profit, divide both sides of the equation by 0.05:

Total profit = $27,600 / 0.05

Total profit = $552,000

Thus, Lynh's total profit is $552,000, which corresponds to the choice listed. Understanding this helps in grasping how profit-sharing works in relation to the overall profits of a business.