Question

J of jaipur send 500 radios @200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to get a commission of Rs 25 per radio plus 20% of gross sale proceeds as exceeds an amount calculated @20% profit on cost. Calculate commission

Answer 1

commission at 25 per radio= 500×25=12500
sales at 20% profit=(500×200)+20%=120000
actual sales=(500×200)+25%=125000
sales in exces of 20% profit=5000
commission on profit=5000×20%=1000
total commission=13500