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Sum

A salesman receives 3% commission on the sales up to ₹ 50,000 and 4% commission on the sales over ₹ 50,000. Find his total income on the sale of ₹ 2,00,000.

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#### Solution

Salesman earns 3% commission on the sales up to ₹ 50,000 and 4% commission on the sales over ₹ 50,000.

His total sales is ₹ 2,00,000.

∴ 3% Commission on sales upto ₹ 50,000

= ₹ `50,000 xx 3/100` = ₹ 1500 ...(i)

4% Commission on sales over ₹ 50,000

sales over ₹ 50,000

= ₹ (2,00,000 – 50,000) = ₹ 1,50,000

i.e., 4% commission on ₹ 1,50,000

= `1,50,000 xx 4/100` = ₹ 6000 ...(ii)

From (i) and (ii),

Total commission = ₹ (1,500 + 6,000) = ₹ 7,500

∴ Total income on the sale of ₹ 2,00,000 is ₹ 7,500.

Concept: Commission and Brokerage Agent

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