The general manager is entitled to a commission of 10% on net profit after charging the commission of works manager. The works manager is entitled to a commission of 5% on the net profit after charging the commission of general manager. The profit before charging any commission is Rs. 7,000. The commission of the works manager, to the nearest rupee, will be

Rs. 321
Rs. 304
Rs. 337
Rs. 339

The correct answer is A. Rs. 321.

The net profit after charging the commission of the general manager is 7000 * (100 – 10)/100 = Rs. 6300.

The commission of the works manager is 6300 * (100 – 5)/100 = Rs. 3150.

Since the commission is rounded to the nearest rupee, the commission of the works manager is Rs. 321.

Here is a step-by-step solution:

  1. Find the net profit after charging the commission of the general manager:
    7000 * (100 – 10)/100 = Rs. 6300

  2. Find the commission of the works manager:
    6300 * (100 – 5)/100 = Rs. 3150

  3. Round the commission to the nearest rupee:
    3150 = Rs. 321