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Question

A salesman gets a commission on total sales at 9%. If the sale is exceeded ₹10,000 he gets an additional commission as a bonus of 3% on the excess of sales over ₹10,000.
If his total sales for the month is ₹15000. What is the total commission that he gets for the month?


A

1350

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B

1600

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C

1550

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D

1500

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Solution

The correct option is D

1500


Rate of commission = 9%
Total Sales = ₹15000
Commission = 9% of 15000=9100×15000=1350
He gets an additional bonus of 3% on excess of sales over ₹10000.
Excess sales amount = ₹15000 - 10000 = ₹5000
Additional commission = 3% of 5000=3100×5000=150

Total commission for the month = ₹1350 + ₹150 = ₹1500


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