Question

The monthly salary of a salesman of a departmental store is Rs 12,500 and an additional payment of 0.5 % on the total monthly sale is provided as commission.

i) Calculate his total income in a month if he makes a total sale of Rs 7,20,000 in that month.

ii) What should be his total sale in the next month so that he can receive a total income of Rs 20,000 in the month?​

Answer 1

i.
`Total\ Income = Rs\ 16,100`

ii.
`Monthly\ Sales = Rs\ 1,500,000`

Explanation:

Given

`Salary = Rs\ 12,500`

Commission = 0.5% of Monthly Sales

Calculating his total income is total sales is Rs 720,000

`Total\ Income = Salary + Commission`

Substitute (0.5% of Monthly Sales) for Commission

`Total\ Income = Salary + (0.5\%\ of\ Monthly\ Sales)`

Substitute Rs 720,000 for Monthly Sales and Rs 12,500 for Salary

`Total\ Income = Rs\ 12,500 + 0.5\%\ of\ Rs\ 720,000`

`Total\ Income = Rs\ 12,500 + 0.5\%\ * Rs\ 720,000`

Convert % to decimal

`Total\ Income = Rs\ 12,500 + 0.005\ * Rs\ 720,000`

`Total\ Income = Rs\ 12,500 + Rs\ 3,600`

`Total\ Income = Rs\ 16,100`

Calculating his total sales if total income = Rs 20,000

Recall that;

`Total\ Income = Salary + Commission`

Substitute Rs 20,000 for Total Income; Rs 12,500 for Salary and (0.5% of Monthly Sales) for Commission

`Rs\ 20,000 = Rs\ 12,500 + 0.5\%\ of\ Monthly\ Sales`

Subtract Rs 12,500 from both sides

`Rs\ 20,000 - Rs\ 12,500 = Rs\ 12,500 - Rs\ 12,500 + 0.5\%\ of\ Monthly\ Sales`

`Rs\ 7,500 = 0.5\%\ of\ Monthly\ Sales`

`Rs\ 7,500 = 0.5\%\ *\ Monthly\ Sales`

Divide both sides by 0.5%

`(Rs\ 7,500)/(0.5\%) = (0.5\%\ *\ Monthly\ Sales)/(0.5\%)`

`(Rs\ 7,500)/(0.5\%) = Monthly\ Sales`

Convert % to decimal

`(Rs\ 7,500)/(0.5\%) = Monthly\ Sales`

`(Rs\ 7,500)/(0.005) = Monthly\ Sales`

`Rs\ 1,500,000 = Monthly\ Sales`

`Monthly\ Sales = Rs\ 1,500,000`