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Cpt- i am unable to solve this question.please help
X sent goods to B at 125% of cost which is invoice price. The rate of commission is 10% on sales at IP and 25% of any surplus realised above IP. 10% of the goods sent out on consignment , invoice value of which is Rs.12500 were destroyed. 75% of the total consignment is sold by B at Rs .100000. What will be the amount of commission payable to B?
A. Rs.10937.50
B. Rs.9700
C. Rs.10000
Replies (1)
Given 10% of goods were destroyed,
IP is 12500, therefore cost is 12500 / 125% = 10,000
therefore total cost of goods send = 10,000 / 10 * 100 = 100,000
therefore 75% of goods = 75000
IP at 125% = 93750
Surplus over IP = 100,000 - 93,750 = 6,250
Commission = 93750*10% + 6250*25% =10,937.5
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