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Question

Net profit before charging commission to General & Sales manager - Rs 1,65,920
The General Manager is entitled to commission of 10% on net profit after charging such commission and commission of Sales Manager.
The Sales Manager is entitled to commission of 5% on net profit after charging such commission and commission of General Manager.
Commission payable to General Manager- Rs ____________ & Sales Manager - Rs ______________.

A
7,214 & 14,428
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B
14,428 & 7,214
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C
16,592 & 8,296
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D
8,296 & 16,592
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Solution

The correct option is B 14,428 & 7,214
Whenever it is given to calculate the commission after charging such commission then the formula becomes:
Net profit * Rate of commission/ 100+ Rate of commission
So, Commission payable to General Manager = 165920*10/100+10+5
165920*10/115 = 14427.8 or 14428
Commission payable to Sales Manager = 165920*5/115
= 7213.9 or 7214.

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