Consignee is entitled to get commission 25% per article. sold plus 1/4...
Calculation of Consignee's Commission:
Given Details:
- Consignee's commission rate per article sold: 25%
- Consignee's additional commission rate: 1/4 of the amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold
- Number of articles sold: 450
- Total sale proceeds: Rs. 73,800
Step 1: Calculate the total amount received by the consignee from the sale of 450 articles.
- Total amount received = Number of articles sold * Price per article
- Total amount received = 450 * Rs. 73800/450
- Total amount received = Rs. 73,800
Step 2: Calculate the commission on the sale of 450 articles.
- Commission on the sale of 450 articles = Total amount received * Commission rate per article sold
- Commission on the sale of 450 articles = Rs. 73,800 * 25%
- Commission on the sale of 450 articles = Rs. 18,450
Step 3: Calculate the amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold.
- Amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold = (Total amount received - Commission on the sale of 450 articles) - (Number of articles sold * Rs. 125 per article sold)
- Amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold = (Rs. 73,800 - Rs. 18,450) - (450 * Rs. 125)
- Amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold = Rs. 10,800
Step 4: Calculate the additional commission on the sale of 450 articles.
- Additional commission on the sale of 450 articles = Amount by which gross sale proceeds less total commission exceed Rs. 125 per article sold * Additional commission rate
- Additional commission on the sale of 450 articles = Rs. 10,800 * 1/4
- Additional commission on the sale of 450 articles = Rs. 2,700
Total Commission:
- Total commission on the sale of 450 articles = Commission on the sale of 450 articles + Additional commission on the sale of 450 articles
- Total commission on the sale of 450 articles = Rs. 18,450 + Rs. 2,700
- Total commission on the sale of 450 articles = Rs. 21,150
Therefore, the consignee's commission on the sale of 450 articles at Rs. 73,800 is Rs. 21,150.
Consignee is entitled to get commission 25% per article. sold plus 1/4...
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