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A gets eight percent commission on profit after salary and before reserve. Profit is Rs 350000 and salary is Rs 70000. What is the commission?

Answer and explanation

Correct answer: Rs 22400

The direct answer is option A, Rs 22,400. The words “after salary and before reserve” tell us the order of calculation. First subtract the salary from the profit: Rs 3,50,000 − Rs 70,000 = Rs 2,80,000. The reserve is considered later, so it does not reduce the amount on which commission is calculated. Commission is 8% of Rs 2,80,000: \(8/100 \times 2,80,000 = Rs 22,400\). Option A is correct because it is exactly this amount. Option B, Rs 28,000, is 8% of Rs 3,50,000, so it ignores the salary deduction. Option C, Rs 20,000, does not follow the stated percentage and base. Option D, Rs 33,600, is 12% of Rs 2,80,000, not 8%. Remember: follow the words in order—profit, subtract salary, then calculate commission; reserve comes after it.

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