Calculate the commission of general manager and work manager of the following: General manager and works manager are to be given a commission at 10% and 5% respectively on the net profit after charging the commission. Profit prior to deduction of commission was 84,100.​

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Answer:

To calculate the commission for the General Manager (GM) and Works Manager (WM) based on the given profit, we'll follow these steps:

1. **Calculate the net profit after deducting the commission:**

Given:

- Profit before deduction of commission (P) = Rs. 84,100

Let's denote:

- GM's commission rate = 10% = 0.10

- WM's commission rate = 5% = 0.05

The net profit after deducting commission is:

\[ \text{Net Profit} = P \times \left(1 - \text{GM's commission rate} - \text{WM's commission rate}\right) \]

\[ \text{Net Profit} = 84,100 \times \left(1 - 0.10 - 0.05\right) \]

\[ \text{Net Profit} = 84,100 \times 0.85 \]

\[ \text{Net Profit} = 71,485 \]

2. **Calculate the commission for each manager:**

- **GM's Commission:**

\[ \text{GM's Commission} = \text{Net Profit} \times \text{GM's commission rate} \]

\[ \text{GM's Commission} = 71,485 \times 0.10 \]

\[ \text{GM's Commission} = 7,148.50 \]

- **WM's Commission:**

\[ \text{WM's Commission} = \text{Net Profit} \times \text{WM's commission rate} \]

\[ \text{WM's Commission} = 71,485 \times 0.05 \]

\[ \text{WM's Commission} = 3,574.25 \]

Therefore, the commission for the General Manager is Rs. 7,148.50 and the commission for the Works Manager is Rs. 3,574.25.

These calculations reflect the amounts each manager would receive based on their respective commission rates applied to the net profit after deducting the commissions.