Multiple choice

X and Y are partners sharing profit and losses in the ratio 4 : 1, Z was manager who received a salary of Rs. 8, 000 p. m in addition to a commission of 5% on net profit after charging such commission. Profit for the year is Rs. 13, 56, 000 before charging salary. Find the total remuneration of Z.

  1. Rs. 1, 56, 000

  2. Rs. 1, 76, 000`

  3. Rs. 1, 74, 000

  4. Rs. 1, 52, 000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Salary = 8000 x 12 = 96,000. Commission: Let commission = C. Profit after salary = 13,56,000 - 96,000 = 12,60,000. Commission = 5% of (12,60,000 - C) = 0.05(12,60,000 - C). So C = 63,000 - 0.05C, 1.05C = 63,000, C = 60,000. Total = 96,000 + 60,000 = 1,56,000.

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