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# Solve plz

X send out goods costing Rs80,000 to Y so as to show 20% profit on invoice price. 40% of goods were lost in transit. 60% of goods received were sold half at invoice price and balance at 25% above the invoice price,rate of commission is 10% on the sales at invoice price plus 50% on gross sales less all commission exceeds the invoice price. The amount of commission is

Rajnikant Vadigoppula (CA, CS And CMA Final)     20 March 2012

normal commission = 10% of invoice price {(80000*100/80)-40%}

=   60000*10/100=6000.

excess commission =  [{(80000*100/80)-40%}1/2+25%] - 6000(commission)*50%

=(30000+25%-6000)*50%=(37500-6000)*50%=15750

total commission = 6000+15750=21750

uttam (0)     20 March 2012

 Commission Particulars Cost Invoice Value 10% on Sales 50% on excess Gross Sales Total Goods 80000 100000 Lost in Transit 32000 40000 goods received 48000 60000 60% of goods received 36000 Sale value of 1/2 of 60% (as above) 18000 1800 Sale value of remaining 1/2 of 60% 22500 1800 1350 3600 1350 Total commission 4950

uttam (0)     20 March 2012

Refer attachment for workings

Attached File : 319956 951835 commission.xls downloaded: 115 times

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