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Salesman Commission Calculation

MAT 2018 · Mathematical Skills · Medium · Percentages

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A salesman's terms were changed from a flat commission of 5%5\% on all his sales to a fixed salary of Rs. 1,0001,000 plus 2.5%2.5\% commission on all sales exceeding Rs. 4,0004,000. If his remuneration, according to the new scheme, was Rs. 600600 more than by the first scheme, what was his sales worth?

  1. A.

    Rs. 6,000

  2. B.

    Rs. 8,000

  3. C.

    Rs. 12,000

  4. D.

    Rs. 16,000

Answer

C

Explanation

Let total sales be SS.

Old remuneration =0.05S= 0.05 S New remuneration =1000+0.025(S−4000)=900+0.025S= 1000 + 0.025(S - 4000) = 900 + 0.025 S

Given (900+0.025S)−0.05S=600(900 + 0.025 S) - 0.05 S = 600: 900−0.025S=600900 - 0.025 S = 600 0.025S=300  ⟹  S=3000.025=12,0000.025 S = 300 \implies S = \frac{300}{0.025} = 12,000

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