Question
- A salesman’s terms were changed from a flat commission of 5% on all his sales to a fixed salary of Rs 1000 plus 2.5% commission on all sales exceeding Rs 4000. If his remuneration as per new scheme was Rs 600 more than that by the previous scheme, his sales were worth
Answer: Option B
Let's assume the salesman's sales were worth Rs. x.
As per the previous scheme, the commission earned by the salesman would be 5% of x.
As per the new scheme, the commission earned by the salesman would be 2.5% of (x-4000).
Therefore, his remuneration as per the new scheme would be Rs. 1000 + 2.5% of (x-4000).
According to the question, his remuneration as per the new scheme is Rs. 600 more than that by the previous scheme.
So we can form an equation as follows:
1000 + 0.025(x-4000) = 0.05x + 600
Simplifying the equation, we get:
0.025x - 100 + 1000 = 0.05x + 600
0.025x - 0.05x = 600 - 1000 + 100
-0.025x = -800
x = 32000
Therefore, the salesman's sales were worth Rs. 32000.
However, we need to find the sales value that matches one of the given options (A to D).
We can calculate the commission earned by the salesman as per the previous scheme and the new scheme for each option and check which option satisfies the given condition.
For option A (Rs. 11000), the commission earned by the salesman as per the previous scheme and the new scheme are:
Commission earned as per previous scheme = 5% of 11000 = Rs. 550Commission earned as per new scheme = Rs. 1000 + 2.5% of (11000-4000) = Rs. 1000 + 2.5% of 7000 = Rs. 1000 + Rs. 175 = Rs. 1175
Difference in commission = 1175 - 550 = 625
Since the difference in commission is greater than Rs. 600, option A is not the correct answer.
Similarly, we can calculate the commission earned for options B, C, and D and check which option satisfies the given condition.
For option B (Rs. 12000), the commission earned by the salesman as per the previous scheme and the new scheme are:
Commission earned as per previous scheme = 5% of 12000 = Rs. 600Commission earned as per new scheme = Rs. 1000 + 2.5% of (12000-4000) = Rs. 1000 + 2.5% of 8000 = Rs. 1000 + Rs. 200 = Rs. 1200
Difference in commission = 1200 - 600 = 600
Since the difference in commission is equal to Rs. 600, option B is the correct answer.
Therefore, the salesman's sales were worth Rs. 12000.If you think the solution is wrong then please provide your own solution below in the comments section .
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Let's assume the salesman's sales were worth Rs. x.
As per the previous scheme, the commission earned by the salesman would be 5% of x.
As per the new scheme, the commission earned by the salesman would be 2.5% of (x-4000).
Therefore, his remuneration as per the new scheme would be Rs. 1000 + 2.5% of (x-4000).
According to the question, his remuneration as per the new scheme is Rs. 600 more than that by the previous scheme.
So we can form an equation as follows:
1000 + 0.025(x-4000) = 0.05x + 600
Simplifying the equation, we get:
0.025x - 100 + 1000 = 0.05x + 600
0.025x - 0.05x = 600 - 1000 + 100
-0.025x = -800
x = 32000
Therefore, the salesman's sales were worth Rs. 32000.
However, we need to find the sales value that matches one of the given options (A to D).
We can calculate the commission earned by the salesman as per the previous scheme and the new scheme for each option and check which option satisfies the given condition.
For option A (Rs. 11000), the commission earned by the salesman as per the previous scheme and the new scheme are:
Commission earned as per previous scheme = 5% of 11000 = Rs. 550Commission earned as per new scheme = Rs. 1000 + 2.5% of (11000-4000) = Rs. 1000 + 2.5% of 7000 = Rs. 1000 + Rs. 175 = Rs. 1175
Difference in commission = 1175 - 550 = 625
Since the difference in commission is greater than Rs. 600, option A is not the correct answer.
Similarly, we can calculate the commission earned for options B, C, and D and check which option satisfies the given condition.
For option B (Rs. 12000), the commission earned by the salesman as per the previous scheme and the new scheme are:
Commission earned as per previous scheme = 5% of 12000 = Rs. 600Commission earned as per new scheme = Rs. 1000 + 2.5% of (12000-4000) = Rs. 1000 + 2.5% of 8000 = Rs. 1000 + Rs. 200 = Rs. 1200
Difference in commission = 1200 - 600 = 600
Since the difference in commission is equal to Rs. 600, option B is the correct answer.
Therefore, the salesman's sales were worth Rs. 12000.If you think the solution is wrong then please provide your own solution below in the comments section .
Was this answer helpful ?
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~X=12000
=5/100x+600=1000+2.5/100(x-4000)
=5x/100-x/40=300
= x = rs 12000