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Net profit of a firm is rs49,500. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s Commission will be :
4,950
4,500
5,500
495
- To compute the manager's commission, we first need to find the profit before charging his commission.
- If the net profit after commission is Rs 49,500, this means the profit before commission can be represented as x .
- The manager receives 10% of this amount, and the profit after commission is given by the equation:
x - 0.10x = 49,500
0.90x = 49,500
x = 49,500 / 0.90
x = 55,000
- The manager's commission is 10% of Rs 55,000= Rs 5,500.
By: santosh ProfileResourcesReport error
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