Plzz solve

1) Cost Price of the goods is Rs. 80000.

Margin of 20% on sales is equivalent to 25% on cost (Assume SP to be 100, Profit wil be 20% of Rs. 100 i.e. Rs. 20. Hence CP will be Rs. 80)

Now

 Hence SP will be Rs. 100000

Commission = 100000*10% = 10000

2) 20000*4/5 = 16000

Comm 16000*2%   = 320

Surplus will be 17600-16000 = 1600

Comm 1600*10% = 160

Total Comm = 320+160 = 480

1. 20% of sales is profit. this implies 80% of sales is cost of goods sold. so sales = 80,000/(0.8) i.e. 1,00,000. 10% of sales is commission i.e 10,000

2. 4/5 th of good are sold invoice value for themis 4/5(20,000) = 16,000. surplus is 1600 therefore commission is 2%(16,000) + 10%(1600) = 320+160 = 480

Hi, in ur question, the trick is that they have given you the cost price of goods to be sold. And the 20% margin rate is on sale price, not the cost price. You need to calculate the margin on cost price then your answer will match...... the margin on cost price comes to 1/4 th the c.p.. So it comes to 20,000. so total sale value comes to 80000+20000= 1,00,000.

Now the commission will be 10% of 100000 i.e., 10000 (answer)