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Deepak’s salary was increased from ₹ 4,000 to ₹ 5,000. The sales being the same, due to reduction in the rate of commission from 3% to 2%, his income remained unchanged. Find his sales. - Mathematics and Statistics

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Question

Deepak’s salary was increased from ₹ 4,000 to ₹ 5,000. The sales being the same, due to reduction in the rate of commission from 3% to 2%, his income remained unchanged. Find his sales.

Sum
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Solution

Let the sales made by Deepak be ‘x’.

Existing Salary received is ₹ 4,000

Rate of commission is 3%

∴ Initial income of Deepak = Salary + Commission on sales

= 4000 + 3% on x

= `4000 + (3x)/100`      ...(i)

Salary was increased to ₹ 5,000 and rate of commission decreased to 2%. However, sales was still the same.

∴ New income of Deepak = Salary + Commission on sales

= 5000 + 2% on x

= `5000 + (2x)/100`     ...(ii)

It is given that the income of Deepak remained unchanged.

∴ `4000 + (3x)/100 = 5000 + (2x)/100`       .....[From (i) and (ii)]

∴ ` (3x)/100 - (2x)/100 = 5000 - 4000`

∴ `x/100 = 1000`

∴ x = 1,00,000

∴ Sales made by Deepak is ₹ 1,00,000.

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Commission and Brokerage Agent
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Chapter 1: Commission, Brokerage and Discount - Exercise 1.1 [Page 5]

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