Question

A sales representative’s commission is 6% on all sales up to Rs.15000 and 5% on all sales

exceeding this. He remits Rs.47350 to his company after deducting his commission. What were

the total sales?​

Answer 1

Rs.50,000

Explanation:

Let the total sales be x

If a sales representative’s commission is 6% on all sales up to Rs 15000, then;

Commission = 6% of 15000

Commission = 6/100×15000

Commission = 6×150

Commission = Rs.900 on sales up to Rs. 15000.

Amount left unsold will be x - 15000

If there is 5% on all sales exceeding this, then the commission will be expressed as;

5% of (x-15000)

= 0.05(x-15000)

Total commission = 900+0.05(x-15000)

If the remits Rs47350 after deducting commission, then;

Total sales - commission = 47350

x - {900+0.05(x-15000)} = 47350

Open parenthesis

x - 900-0.05x+750 = 47350

x-0.05x-150 = 47350

x-0.05x = 47350+150

x-0.05x = 47500

0.95x = 47500

x = 47500/0.95

x = 50,000

Hence the total sales is Rs.50,000

Answer 2

50,000

Explanation:

Given that:

Sales on all goods up to 15000 = 6% commission

Sales exceeding 15000 = 5% commision

He remits Rs.47350 to his company after deducting his commission. What were his total sales

Let total sales = t

Commission will be in 2 folds ;

Sales up to 15000;

6% of 15000 = 0.06 * 15000 = 900

Sales above 15000;

5% of (t - 15000)

0.05 * (t - 15000) = 0.05t - 750

Total commision : 900 + 0.05t - 750

Total commision = 150 + 0.05t

Amount remitted = total sales - commission

47350 = t - (150 + 0.05t)

47350 = t - 150 - 0.05t

47350 = 0.95t - 150

47350 + 150 = 0.95t

47500 = 0.95t

47500 / 0.95 = 0.95t / 0.95

50000 = t

Hence, total earning, t, = 50000