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ATQ,
Let the initial investment of 'Lalita' and 'Meru' be Rs. 5x and Rs. 8x respectively.
Increased investment of 'Lalita' = 5x X 1.4 = Rs. 7x
Decreased investment of 'Meru' = 8x X 0.875 = Rs. 7x
So, the ratio pf the profit share of 'Lalita' and 'Meru' respectively,
= {(5x X 4) + (7x X 8) }:{(8x X 4) + (7x X 8) }
= 19:22
So, required profit = 20500 X (22/41) = Rs. 11,000
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