A salesman is paid fixed monthly salary plus commission on the sales. If on sale of ₹ 96,000 and ₹ 1,08,000 in two successive months he receives in all ₹ 17,600 and ₹ 18,800 respectively, find his monthly salary and rate of commission paid to him.

#### Solution

Salesman gets salary plus commission.

Income of salesman in the first month

= Salary + Commission on sales

17,600 = Salary + Commission on ₹ 96,000 …(i)

Income of salesman in the second month

= Salary + commission on ₹ 1,08,000

18,800 = Salary + commission on ₹ 1,08,000 …(ii)

Now, subtracting (i) from (ii) we get

18,800 = Salary + commission on ₹ 1,08,000

(-) 17,600 = Salary + commission on ₹ 96,000

(-) (-) (-)

1,200 = commission on 12,000

∴ Rate of commission = `(1,200 xx100)/(12,000)`

= 10 % p.a.

∴ Commission on sales of ₹ 96,000

`= 96,000 xx 10/100` = ₹ 9,600

Substituting commission 9,600 is equation (i), we get

17,600 = Salary + Commission on ₹ 96,000

∴ 17,600 = Salary + 9,600

∴ 17,600 – 9,600 = Salary

∴ Salary = ₹ 8,000

Monthly salary and rate of commission is ₹ 8,000 and 10% respectively.