The correct answer is: None of the above.
The manager’s commission is given at the rate of 10% on the profits after giving commission to him. This means that the manager’s commission is not calculated on the total profit, but on the profit that remains after the manager’s commission has been paid.
To calculate the manager’s commission, we first need to calculate the profit after giving commission. We can do this by subtracting the manager’s commission from the total profit. The total profit is given as Rs. 1,54,000, and the manager’s commission is given as 10%. Therefore, the profit after giving commission is:
Profit after giving commission = Total profit – Manager’s commission
= Rs. 1,54,000 – 10% of Rs. 1,54,000
= Rs. 1,54,000 – Rs. 15,400
= Rs. 1,38,600
Once we have calculated the profit after giving commission, we can calculate the manager’s commission by multiplying the profit after giving commission by the manager’s commission rate. The manager’s commission rate is given as 10%. Therefore, the manager’s commission is:
Manager’s commission = Profit after giving commission * Manager’s commission rate
= Rs. 1,38,600 * 10%
= Rs. 13,860
Therefore, the payable commission is Rs. 13,860.