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Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be
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Ram of Mumbai send out certain goods at cost plus 25%, invoice value o...
Ram of Mumbai - Cost Plus Pricing Model:
Ram of Mumbai:
Ram of Mumbai follows a cost plus pricing model, which means that he determines the selling price of his goods by adding a certain percentage of profit to the cost price. In this case, he adds 25% to the cost price of the goods to determine the selling price.
Invoice Value:
The invoice value of the goods sent out by Ram of Mumbai is Rs 20,000. This is the value mentioned in the invoice that is sent to the consignee.
Goods Sold by Consignee:
Out of the goods sent out by Ram of Mumbai, 4/5th (or 80%) of the goods were sold by the consignee. The consignee sells these goods for Rs 17,600.
Commission:
The consignee receives a commission for selling the goods on behalf of Ram of Mumbai. The commission is calculated based on the selling price of the goods.
Commission Calculation:
1. Commission on Invoice Value: The consignee receives a commission of 2% on the invoice value of the goods, which is Rs 20,000. Therefore, the commission on the invoice value is 2% of Rs 20,000, which is Rs 400.
2. Commission on Surplus: The consignee also receives a commission of 10% on any surplus amount above the invoice value. In this case, since the goods were sold for Rs 17,600 and the invoice value is Rs 20,000, there is a surplus of Rs 17,600 - Rs 20,000 = -Rs 2,400. As the surplus is negative, there is no commission on the surplus amount.
Total Commission:
The total commission received by the consignee is the sum of the commission on the invoice value and the commission on the surplus. In this case, the total commission is Rs 400.
Summary:
In summary, Ram of Mumbai follows a cost plus pricing model and adds a 25% profit margin to the cost price of the goods. The invoice value of the goods sent out is Rs 20,000, and the consignee sells 4/5th of the goods for Rs 17,600. The consignee receives a commission of 2% on the invoice value, which is Rs 400. There is no commission on the surplus amount as it is negative. Therefore, the total commission received by the consignee is Rs 400.
Ram of Mumbai:
Ram of Mumbai follows a cost plus pricing model, which means that he determines the selling price of his goods by adding a certain percentage of profit to the cost price. In this case, he adds 25% to the cost price of the goods to determine the selling price.
Invoice Value:
The invoice value of the goods sent out by Ram of Mumbai is Rs 20,000. This is the value mentioned in the invoice that is sent to the consignee.
Goods Sold by Consignee:
Out of the goods sent out by Ram of Mumbai, 4/5th (or 80%) of the goods were sold by the consignee. The consignee sells these goods for Rs 17,600.
Commission:
The consignee receives a commission for selling the goods on behalf of Ram of Mumbai. The commission is calculated based on the selling price of the goods.
Commission Calculation:
1. Commission on Invoice Value: The consignee receives a commission of 2% on the invoice value of the goods, which is Rs 20,000. Therefore, the commission on the invoice value is 2% of Rs 20,000, which is Rs 400.
2. Commission on Surplus: The consignee also receives a commission of 10% on any surplus amount above the invoice value. In this case, since the goods were sold for Rs 17,600 and the invoice value is Rs 20,000, there is a surplus of Rs 17,600 - Rs 20,000 = -Rs 2,400. As the surplus is negative, there is no commission on the surplus amount.
Total Commission:
The total commission received by the consignee is the sum of the commission on the invoice value and the commission on the surplus. In this case, the total commission is Rs 400.
Summary:
In summary, Ram of Mumbai follows a cost plus pricing model and adds a 25% profit margin to the cost price of the goods. The invoice value of the goods sent out is Rs 20,000, and the consignee sells 4/5th of the goods for Rs 17,600. The consignee receives a commission of 2% on the invoice value, which is Rs 400. There is no commission on the surplus amount as it is negative. Therefore, the total commission received by the consignee is Rs 400.
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Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be
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Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be.
Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram of Mumbai send out certain goods at cost plus 25%, invoice value of goods send out Rs 20000.4/5th of goods were sold by consinee at Rs17600. Commission 2%upto invoice value and 10%on any surplus above invoice value commission amount will be.
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