Kindly solve

how much is the sale qty. of TV ??????????

2nd Query was already resolve : visit : /experts/in-chapter-consignment-169016.asp

sale quanity is 50 T.V

Based on Sales Qty: 50 T.V. 

Basic Commission = 50 t.v. x Rs.500/- per TV = Rs.25000/-

Let Additional Commission be Y is 1/4th / 25% of

=(15000x50 - (25000+Y)-12500x50)

=(750000-(25000+y)-625000)

=(725000-y-625000)

=(100000-y)

so 25% or 1/4th of 100000

Basic Commission + Additional Commission= Total Commisison = 25000+25000=50000/-

Shilpa is right.

Dear Shilpa,

can u plz lemme knw about how the Figure of Rs. 1300 derived in short cut method of Solution to 2nd problem?

Normal commission @ rs. 500 on 50 TV = Rs. 25000/-

Gross Profit Margin = (Rs. 15000.00 X 50 ) - (Rs. 12500.00 X 50)

                                    = (Rs. 750000.00 - Rs. 625000.00)

                                    = Rs. 125000

Profit after normal Commission = (Rs. 125000 - Rs. 25000)

                                                          = Rs. 100000.00 (Whcih includes turnover commission)

Turnover commission @ 25% = Rs. 100000.00 X 25/125

                                                       = Rs. 20000

So Total Commission = 25000+20000= Rs. 45000

Okkkkkk

Thanx a lot swarupji...for such a clear understanding..

In 2nd query under short cut method the figure is mistakenly typed as Rs.1300/- instead of Rs.1700/- (i.e., basic commission) take correct figure as 1700/- & check the answer.

Again in my reply to first query, formula wrongly executed by me ,

correction is as follows :

Let Additional Commission be Y is 1/4th / 25% of

y=1/4(15000x50 - (25000+Y)-12500x50)

y=1/4(750000-(25000+y)-625000)

y=1/4(725000-y-625000)

y= 1/4(725000-y-625000)

y(100/25) =(100000-y)  (1/4 taken on left)

4y=100000-y

4y+y =100000

5y=100000

y=20000 (Additional Commission)

Basic Commission + Additional Commission= Total Commisison = 25000+20000=45000/-

so total Commision = Rs.45000/- i.e., (d)    :-) o.k.

In Swarup's reply he mentioned about Gross profit margin, but Gross Profit Margin is calculated as sales less cost of goods sold. There is no mention of Cost of Goods Sold.

The difference between amount calculated with Rs.15000/- per TV  and Rs.12500/ per f TV. with same Qty i.e., 50,  is additional sales revenue (higher sales price) and not Gross profit margin. There fore on Additional Sales revenue additional Commission of Rs.20000/- is payable.