Plzz solve

CPT 715 views 3 replies

raghu

IPCC STUDENT

270 Points Joined February 2011

1. A manager gets 10% comission on sales. cost price of goods sold is 80000 Rs which he sold at a margin 20% on sales amount of commission will be ?

ans : 10000 please explain how will we get 10000/-

2. ram of mumbai sents out certain goods at cost plus 25%.invoice value of goods sends out Rs 20000/- 4/5th of the goods were sold by consignee at Rs 17600/- comisson 2% up to invoice value and 10% on any surplus above invoice value comission amount will be ?

and : 480 please explain how we will get

Replies (3)

CA Siddhi Gupta

Consultant (RAS)

145 Points Joined February 2009

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

CP	SP
80	100
80000	?

80000*100/80

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

Tejaswi Kasturi

student-cpt

427 Points Joined April 2012

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

ABHINAV SURELIA

CA & CS

92 Points Joined January 2009

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)