Question

A salesman is paid $7$$\%$ commission on total sales and additional incentive at $4$ $\%$ on excess of sales over Rs. $50,000$. Find his total earning on total sales of Rs. $75,000$

Answer 1

Commission on total sales $=7$ $\%$
Incentive for sales above $50,000=4$ $\%$
Total sales $=$ Rs. $75000$
Total earning $=0.07\times 75,000+0.04\times 25000=$ Rs. $6250$

Thus, total earnings on total sales of Rs. $75,000$ is Rs. $6250$.