A salesman's terms were changed from a flat commission of 5% on all his sales to a fixed salary of Rs.1000 plus 2.5% commission on all sales exceeding Rs. 4,000. If his remuneration as per new scheme was Rs. 600 more than that by the previous schema, his sales were worth?
Correct answer: B. Rs. 12,000
- A. Rs. 14,000
- B. Rs. 12,000
- C. Rs. 30,000
- D. Rs. 40,000
Explanation
For sales S rupees, the old commission is 5% of S = 0.05S rupees. The new remuneration is 1000 + 2.5% of (S - 4000) = 1000 + 0.025S - 100 = 900 + 0.025S rupees; setting it 600 rupees higher gives 900 - 0.025S = 600, so S = 12000 rupees. The likely mistake is applying the 2.5% commission to all sales and choosing 14000 rupees.
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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.
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