Question

A salesman is allowed 8% commission on the total sale made by him and an additional bonus of 0.5% on the sales exceeding Rs. 15,000. If the total commission earned by the salesman is Rs. 3920, find the total sale he made?

1. Rs. 30,000
2. Rs. 47,000
3. Rs. 35,000
4. Rs. 40,000

Answer 1

Correct Answer - Option 2 : Rs. 47,000

Given:

% of commission earned on total sale = 8%

Commission earned on sale above Rs. 15,000 = 0.5%

Total commission earned = Rs. 3920

Concept:

The commission earned on the sale above Rs. 15,000 will be added to the 8% commission.

Calculation:

Let, the total sale made = Rs.x

% Commission earned on sale exceeding Rs. 15,000 = 8% + 0.5%

= 8.5%

∴ According to the question

(8/100) × 15,000 + (8.5/100) × (x - 15000) = 3920

⇒ 1200 + (8.5/100) × (x - 15000) = 3920

⇒ (8.5/100) × (x - 15000) = 3920 - 1200

⇒ 8.5 (x - 15000)  = 272000

⇒ 8.5x = 272000 + 127500

⇒ 8.5x = 399500

⇒ x = Rs. 47000