Question

The manager of a firm is entitled to a commission of 105 on net profit after his commission. If the net profit of the firm before charging commission is Rs 4,40,000, the amount of manger’s commission will be

Answer 1

Answer:

Commission payable = 10% on Net Profit (after charging the commission)

If Net Profit is Rs. 100, Commission payable = Rs. 10

Thus profit before charging the commission = 100 + 10 = 110

Of Rs. 110, Rs. 10 is commission payable and the balance Rs. 110- Rs. 10 = Rs. 100 is the profit, left after charging the commission.

Here Rs. 2.200 is equal to 110%

Therefore 10% = 2,200/110 x 10 =Rs. 200