Question

Following commission is given to the agent by a company on the monthly sales, Sales Commission rate Upto Rs 20,000 1% Next Rs 30,000 2.5% Above Rs 50,000 3% Calculate the commission received by the agent for the following sales:

a) Rs 120,000
b) Rs 3,50,000
c) Rs 8,00,000

Answer 1

To calculate the commission an agent receives on sales, tiers of the sales amount are multiplied by their respective commission rates and summed up. Tiers are broken down as up to Rs 20,000 at 1%, the next Rs 30,000 at 2.5%, and any sales above Rs 50,000 at 3%.

Step-by-step explanation:

The subject of this question is Mathematics, specifically related to calculating commissions based on sales amounts. To calculate the commission for each sales amount, we need to apply the given rates to the respective sales intervals.

• For sales of Rs 120,000: The first Rs 20,000 earns 1%, the next Rs 30,000 earns 2.5%, and the amount above Rs 50,000 (which is Rs 70,000 in this case) earns 3% commission.
• For sales of Rs 3,50,000: Apply the same tiered commission rates as before, but now the amount above Rs 50,000 is Rs 3,00,000.
• For sales of Rs 8,00,000: Again, use the same commission structure, with the amount above Rs 50,000 being Rs 7,50,000.

To assist with the calculations, you can use a tiered structure, calculating the commission for each part of the sales separately and then adding them up for the total commission.