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A is to receive ten percent commission on profit before charging commission. If profit is Rs 70000 what is the commission?

Answer and explanation

Correct answer: Rs 7000

The direct answer is A: the commission is Rs 7000. The phrase “before charging commission” means the given Rs 70000 is the profit before commission is deducted, so it is the full base for calculation. Step 1: write the rate as 10%. Step 2: calculate 10% of Rs 70000: Rs 70000 × 10/100 = Rs 7000. Step 3: this is the commission. Option A is correct. Option B, about Rs 6364, uses the after-commission formula and is therefore unsuitable. Option C, Rs 7700, wrongly adds 10% to the commission base or applies an incorrect operation. Option D, Rs 3500, is 5% of the profit, not 10%. Memory cue: before commission means simple percentage on the stated profit.

Related tags

Commission Before ChargingNumericalProfit

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