Question

The works manager gets commission of 10% on the profit after charging such commission. If the profit is Rs.2,200 what is the amount of his commission ?

• A. Rs.220
• B. Rs.200
• C. Rs.240
• D. Rs.244.44

Answer 1

The correct option is B Rs.200

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