Multiple choice

Mr. A consigned goods costing Rs. 2,50,000 to Mr. B at an invoice price of Rs. 3,00,000. The goods were to be sold at invoice price or above. Mr. B sold some of the goods at invoice price of Rs. 2,00,000 and some at 10% above cost i.e. Rs. 1,10,000. For this he gets 5% commission. The amount of commission is

  1. Rs. 18,000

  2. Rs. 15,000

  3. Rs. 12,500

  4. Rs. 15,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mr. B's commission is 5% on total sales. Sales made: Rs. 2,00,000 (at invoice price) + Rs. 1,10,000 (at 10% above cost) = Rs. 3,10,000. Commission = 5% of Rs. 3,10,000 = Rs. 15,500. The question focuses on the commission calculation formula, not the additional del credere commission mentioned. Options A, B, and C appear to be miscalculations using incorrect bases.

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