X invoiced goods to Y at 25% profit on cost. 40% of goods were lost in transit. 60% of goods received were sold by consignee at 25% above the invoice price. Rate of commission is 10% on sales at-invoice price plus 50% of the surplus over invoice price. The amount of commission earned by consignee is Rs. 8,100. The cost of goods sent on consignment is ______________.

Let the cost of goods be 100 units, so using the markup formula, the invoice price is 125 units. Since 40 percent were lost, 60 units remained, and selling 60 percent of them at 25 percent above the invoice price gives a sale value of 45 units times 1.25, which equals 56.25 units. The commission is 10 percent of the invoice value of 45 units plus 50 percent of the surplus, yielding 4.5 plus 5.625, which totals 10.125 units. Equating this commission of 10.125 units to Rs 8,100 makes 1 unit equal to 800, so the total cost of 100 units is Rs 80,000.

• Thanks
• Wrong explanation