Cpt (accounts problem )

Originally posted by : naeem shaikh
	CONSIGNMENT  COST OF GOODS  2,00,000 SOLD 3/5 FOR 1,40,000 COMM. 2% ON SALES + 20 OF GROSS SLAES LESS ALL COMM. EXCEEDS COST PRICE  THE AMOUNT OF COMMISSION (PLEASE CLARFY ANS.) a 5667(ANS) B 5800 C 6000 D 5600

Normal Commission = 2% of sales = 140000*2% = 2800

Special Commission = 20% (Gross Sales – Cost of Goods Sold – All Commission)

Let us assume special commission to be x

So, x = 20% [140000-(3/5*200000)-2800-x]

or, x = 0.2 (140000-120000-2800-x)

or, x = 28000-24000-560-0.2x

or, 1.2x = 3440

or, x = 3440/1.2 = 2867

Total Commission = 2800+2867 = 5667

5667