Question

A salesman's terms were changed from a flat commission of $5\%$ on all his sales to a fixed salary of Rs. $1,000$ plus $2.5\%$ commission on all sales exceeding Rs. $4,000$. If his remuneration, according to the new scheme, was Rs. $600$ more than by the first scheme, what was his sales worth?

Accepted Answer

C. Let total sales be $S$. Old remuneration $= 0.05 S$ New remuneration $= 1000 + 0.025(S - 4000) = 900 + 0.025 S$ Given $(900 + 0.025 S) - 0.05 S = 600$: $$900 - 0.025 S = 600$$ $$0.025 S = 300 \implies S = \frac{300}{0.025} = 12,000$$

Salesman Commission Calculation

Explanation

Practise this under exam conditions