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.
