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Question

During the year 20142015, the profit of a business before charging Sales Manager's commission was Rs. 1,89,000. If the Sales Manager's commission is 5% on profit after charging his commission, then the total amount of commission payable to manager is?

A
Rs. 10,000
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B
Rs. 9,450
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C
Rs. 9,000
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D
Rs. 8,500
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Solution

The correct option is C Rs. 9,000
Manager's commission = Profit* Rate of commission/ 100+ rate of commission
= 189,000* 5 / 105
= 9,000

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