How the manager commission is calculated if the case is 'after charging commission'?

Profit before commission × Rate of commission/ (100 + commission)

The correct answer is option 3- Profit before commission × Rate of commission/ (100 + commission) .

The manager of the business is sometimes given the commission on the net profit of the company. The percentage of the commission is applied on the profit either before charging such commission or after charging such commission. In the absence of any such information, it is assumed that commission is allowed as a percentage of the net profit before charging such commission.

If the commission is on the profit before charging such commission, it will be calculated as : Profit before commission × Rate of commission/100

If the commission is on the profit after charging such commission, it will be calculated as : Profit before commission × Rate of commission/ (100 + commission)