Commission OC

can ny one solve it off ......./?%#

1. Rs.3400   (170000*2%) + Rs.9320  {(170000-120000-3400)*20%}  total =Rs.12720.

alternatively all commission means after deducting commission=rate/100+ rate

in that case,  Rs. 7767 {(170000-120000-3400)*20/120} then total = Rs. 11167

2. 3000 (150000*2%)  + 2000 {(170000-150000)*20%}   Total = Rs.5000

the total commission will be 170000*2 % =3400

at invoice price 3/5 of the goods will be =150000

take 20 % as 1/5

1/5 x =(170000-150000) -(3400-x)

20000-3400 =6x

x =16600/6=2766.66

so total commission for 1st case 2766.66+3400 =6166.67

for case 2 :

invoice value =(150000*2 pc ) =3000  , exceeds invoice price (20000*10 % ) =2000  (170000-150000)

=5000

please tell me if i am wrong

it should be (170000-120000)

50000-3400 =6x

for ist case 11166.67

@ mridul

Refer my alternate answer in 1st case

Hi Umesh,

let the total commission be X

therefore sales less all commission = 1,70,000 - X

cost price of 3/5 of goods sold = 2,00,000 *3/5 = 1,20,000

hence, meaning of sales - all commission exceeds cost price = 1,70,000 - X - 1,20,000

now, X = 1,70,000 * 2% + 20%(1,70,000 - X - 1,20,000)

         X = 3,400 + 20% (50,000 - X)

        X = 3,400 + 10,000 - 0.20X

X + 0.20 X = 13,400

1.20X = 13,400 

X = 13,400 / 1.20 = Rs. 11,167

Regards, CA Shakuntala Chhangani