Multiple choice

X sent out to Y goods costing Rs. 4, 00, 000 at cost plus 25% with the instruction to sell it at cost plus 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable is 2% on sales. What will be the profit on consignment in the books of consignor?

  1. Rs. 1, 72, 400

  2. Rs. 1, 40, 000

  3. Rs. 1, 50, 400

  4. Rs. 1, 53, 600
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Total Cost of goods       =400000 Cost of 4/5th goods        =320000 Sale Price                        =150% of 320,000                                            =480,000 Commission on Sales   = 2% of 480,000                                            = 9600 Net Profit for consignor  ={480,000-(320,000+9600)}

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