Question

how to calculate managers commission ​

Answer 1

Manager’s commission is calculated in two ways

1) On Profits before charging such commission:-

Manager’s commission=Net Profits X (Percentage of commission / 100)

2) On Profits after charching such commission:-

Manager’s commission=Net Profits X (Percentage of commission / 100+% of commission)

Answer 2

Answer:

in order to encourage the manager to work more and to increase the profits managers maybe given Commission on net profits of the business