Multiple choice

X of Kolkata sends out goods costing 100,000 to Y of Mumbai at cost + 25%. Consignor's expenses Rs. 2000. 3/5th of the goods were sold by consignee at 85000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value. Amount of commission will be

  1. Rs. 3,083

  2. Rs. 3,000

  3. Rs. 2,500

  4. Rs. 2,000

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Invoice price = Cost + 25% = Rs. 100,000 + Rs. 25,000 = Rs. 1,25,000. Consignor's expenses Rs. 2,000. Sales = Rs. 85,000 (3/5th of goods). Commission = 2% on sales + 20% of (gross sales - all commission - invoice value of goods sold). Invoice value of sold goods = 3/5 of Rs. 1,25,000 = Rs. 75,000. Excess = Rs. 85,000 - Rs. 75,000 = Rs. 10,000. Additional commission = 20% of Rs. 10,000 = Rs. 2,000. Base commission = 2% of Rs. 85,000 = Rs. 1,700. Total commission = Rs. 3,700. The correct answer of Rs. 3,083 suggests a different commission structure interpretation.