Multiple choice

Reetu sent a consignment of 1000 bags to Neena costing Rs. 100 each at invoice price by including 20% of cost price. Neena was entitled to ordinary commission @ 3% and del-credre commission @ 2% of invoice price. She was also entitled to get over-riding commission @ 20% for goods sold above the invoice price. She sold 750 bags for Rs. 1, 05,000. Find out the commission payable to her.

  1. Rs. 7, 500

  2. Rs. 8, 250

  3. Rs. 9, 000

  4. Rs. 8, 000
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A Correct answer
Explanation

Ordinary + Del-credre commission @ 5% of (750*120) = Rs. 4, 500 Special commission @ 20% of (1, 05,000-90,000)       = Rs. 3, 000 Total commission Rs. 7, 500 If basic rates are taken as % of sales, then commission = 5250 + 3000 = 8250 If basic rates are taken as % of total invoice price then commission = 6000+ 3000 = 9000

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