Multiple choice

Manoj consigned 500 sets of plastic mugs of cost price of Rs. 40 each to Akash of Pune at an invoice price showing 50% above cost price. Akash was allowed commission @ 10% of invoice value of mugs and 25% for excess of invoice price. He sold 350 mugs @ Rs. 80 per set. Calculate the commission payable to him.

  1. Rs. 2800

  2. Rs. 3850

  3. Rs. 2100

  4. Rs. 1,750

  5. Rs. 4550
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Invoice value per set = 40 + 50% = Rs. 60. Normal commission = 10% of (350 * 60) = Rs.2100 Special commission = 25% of 350 * (80 - 60) = Rs.1750 Total commission = 2100 + 1750 = Rs. 3850.

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