Question

A commission merchant specializing in food products sold consignment of products for a farm. The sales price was $18,450 with commission rate of 12% for farm products. For this consignment, there was $890 freight that the merchant had to pay. What were the net proceeds due to the farm?

Answer 1

The net proceeds due to the farm are $15346.

Explanation:

Given:

The sales price was $18,450 with commission rate of 12% for farm products. For this consignment, there was $890 freight that the merchant had to pay.

Now, to find the net proceeds due to the farm.

So, we deduct the commission rate of 12% for farm products:

$18,450 - 12% of $18,450.

`=18450-(12)/(100) * 18450`

`=18450-(221400)/(100)`

`=18450-2214=\$16236`

And, then we deduct the freight $890 that the merchant had to pay:

`16236-890`

`=\$15346.`

Therefore, the net proceeds due to the farm are $15346.