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Question
Mr. Pavan is paid a fixed weekly salary plus commission based on a percentage of sales made by him. If on the sale of ₹ 68,000 and ₹ 73,000 in two successive weeks, he received in all ₹ 9,880 and ₹ 10,180, find his weekly salary and the rate of commission paid to him.
Solution
Income of Pavan = Salary + Commission on sales
∴ For first week, his income is,
9880 = Salary + Commission on 68000 ...(i)
∴ For second week his income is,
10180 = Salary + commision on 73000 ....(ii)
Subtracting (i) from (ii) we get,
Salary + Commission on 73,000 = 10,180
(–) Salary + Commission on 68,000 = 9,880
(-) (-) (-)
Commission on 5,000 = 300
∴ On sales of ₹ 5,000, commission is ₹ 300
Commission = Sales × Rate of commission
∴ 300 = 5,000 × Rate of commission
∴ Rate of commission = `300/5000 xx 100` = 6%
∴ Commission on sales of ₹ 68,000 at the rate of 6% `= 68,000 xx 6/100` = ₹ 4080
∴ Substituting ₹ 4,080 in equation (i),
Salary + Commission on 68,000 = 9,880
Salary + 4,080 = 9,880
∴ Salary = 9,880 – 4,080 = ₹ 5,800
∴ Weekly salary of Pavan is ₹ 5,800 and rate of commission is 6%.
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