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A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will be
- a)Rs.2,000
- b)Rs.1,800
- c)Rs.2,200
- d)None of the three
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
A manager gets 5% commission on net profit after charging such commiss...
(i) Net Profit for charging commission = 48,000 - 6,000 = 42,000
Manager's Commission = 42,000x5105=Rs 2,000
Most Upvoted Answer
A manager gets 5% commission on net profit after charging such commiss...
Given, Gross profit = Rs. 48,000 and expenses other than manager’s commission = Rs. 6,000.
Let the net profit be x. Then, commission charged on the net profit will be 5% of x.
Expenses including commission charged = expenses other than commission + commission charged
=> 6000 + 5% of x
Total profit = Gross profit - total expenses
=> 48,000 - (6000 + 5% of x)
=> 42,000 - 5% of x
But, total profit = net profit - commission charged
=> x - 5% of x
=> 0.95x
Equating the two expressions for total profit, we get:
42,000 - 5% of x = 0.95x
Solving for x, we get:
x = Rs. 22,526.32
Therefore, commission charged = 5% of x = 5% of Rs. 22,526.32 = Rs. 1,126.32
Hence, the correct answer is option A) Rs. 2,000.
Let the net profit be x. Then, commission charged on the net profit will be 5% of x.
Expenses including commission charged = expenses other than commission + commission charged
=> 6000 + 5% of x
Total profit = Gross profit - total expenses
=> 48,000 - (6000 + 5% of x)
=> 42,000 - 5% of x
But, total profit = net profit - commission charged
=> x - 5% of x
=> 0.95x
Equating the two expressions for total profit, we get:
42,000 - 5% of x = 0.95x
Solving for x, we get:
x = Rs. 22,526.32
Therefore, commission charged = 5% of x = 5% of Rs. 22,526.32 = Rs. 1,126.32
Hence, the correct answer is option A) Rs. 2,000.
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Community Answer
A manager gets 5% commission on net profit after charging such commiss...
Net Profit = Gross Profit - Indirect Expenses
= 48,000 - 6,000
= 42,000
Commission is 5% AFTER charging commission
=(5/100+5) x 42,000
= (5/105) x 42,000
= (1/21) x 42,000
= 2,000
Answer = (a) Rs. 2,000
Hope this helps :)
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A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. Can you explain this answer?
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A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. 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 A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. 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 A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. Can you explain this answer?.
A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. 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 A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. 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 A manager gets 5% commission on net profit after charging such commission. Gross profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are Rs. 6,000.Commission amount will bea)Rs.2,000b)Rs.1,800c)Rs.2,200d)None of the threeCorrect answer is option 'A'. Can you explain this answer?.
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