Paul and Xavier run a business selling homemade soaps. They have been very successful in their first year of trading and have made a profit of $48,000.

Their partnership agreement makes the following provisions:

Paul is to be allocated a salary of $11,000 to reflect her extensive soaps knowledge.

Interest on capital is to be provided at 7% per annum.

The balance of profits is to be split equally.

When they set the business up, Paul injected capital of $8,000 and Xavier $12,000.

How much profit is allocated to Xavier?

A $18,360

B $24,140

C $18,640

D $29,360