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The manager of a firm is entitled to a commission of 10% on net profit after his commission. If the net profit of the firm before charging commission is Rs. 4,40.000, the amount of manager’s commission will be :
  • a)
    Rs. 44,000
  • b)
    Rs. 40,000
  • c)
    Rs. 37,000
  • d)
    Rs. 33,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The manager of a firm is entitled to a commission of 10% on net profit...
's commission is:

First, we need to calculate the net profit after commission.

Net profit after commission = Net profit before commission - Manager's commission

Manager's commission = 10% of (Net profit before commission - Manager's commission)

Let's substitute the given values:

Net profit before commission = Rs. 4,40,000

Manager's commission = 10% of (Rs. 4,40,000 - Manager's commission)

Multiplying both sides by 10:

Manager's commission x 10 = Rs. 44,000 - Manager's commission

Expanding:

11 x Manager's commission = Rs. 44,000

Dividing both sides by 11:

Manager's commission = Rs. 4,000

Therefore, the manager's commission is Rs. 4,000.
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The manager of a firm is entitled to a commission of 10% on net profit after his commission. If the net profit of the firm before charging commission is Rs. 4,40.000, the amount of manager’s commission will be :a)Rs. 44,000b)Rs. 40,000c)Rs. 37,000d)Rs. 33,000Correct answer is option 'B'. Can you explain this answer?
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The manager of a firm is entitled to a commission of 10% on net profit after his commission. If the net profit of the firm before charging commission is Rs. 4,40.000, the amount of manager’s commission will be :a)Rs. 44,000b)Rs. 40,000c)Rs. 37,000d)Rs. 33,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The manager of a firm is entitled to a commission of 10% on net profit after his commission. If the net profit of the firm before charging commission is Rs. 4,40.000, the amount of manager’s commission will be :a)Rs. 44,000b)Rs. 40,000c)Rs. 37,000d)Rs. 33,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The manager of a firm is entitled to a commission of 10% on net profit after his commission. If the net profit of the firm before charging commission is Rs. 4,40.000, the amount of manager’s commission will be :a)Rs. 44,000b)Rs. 40,000c)Rs. 37,000d)Rs. 33,000Correct answer is option 'B'. Can you explain this answer?.
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