Question

X of Kolkata sends out goods costing Rs. 1,00,000 to Y of Delhi. 3/5th of the goods were sold by consignee for Rs. 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be __________ .

• A. Rs. 2,833
• B. 2,900
• C. Rs. 3,000
• D. Rs. 2,800

Answer 1

The correct option is A Rs. 2,833

Cost of goods sold $=\frac{3}{5}\times 1,00,000=Rs.60,000$

Selling Price of goods sold $=Rs.70,000$

Ordinary Commission $=2\%$ on $Rs.70,000=Rs.1,400$

Now, Let the extra commission be $Rs.X$

Therefore, According to Problem :

$X=20\%\left[\right(70,000-1,400-X)-60,000]$

or, $X=\frac{1}{5}\times (8,600-X)$

or, $5X=8,600-X$

or, $X=\frac{8,600}{6}=1,4233$

Therefore, Total Commission $=Rs.(1,400+1,433)=Rs.2,833$