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A of mumbai solds goods to b of chennai. The goods are to be sold at invoice price which represents 125% of cost. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?
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A of mumbai solds goods to b of chennai. The goods are to be sold at i...
Commission Payable to B

Given Information:
- Goods sold from A of Mumbai to B of Chennai
- Goods sold at invoice price which is 125% of cost
- Commission of 10% on sales at invoice price
- Commission of 25% on any surplus realized above invoice price
- 10% of the goods sent out on consignment, with an invoice value of Rs. 12,500, were destroyed
- B sold 75% of the total consignment for Rs. 1,00,000

Calculating the Invoice Price:
Let's assume the cost of the goods sold by A to B is 'x'.
The invoice price will be 125% of the cost, which is 1.25x.

Calculating the Commission on Sales:
The commission on sales at the invoice price is 10%.
Commission on sales = 10% of (Invoice price)
= 10% of (1.25x)
= 0.1 * 1.25x
= 0.125x

Calculating the Surplus Commission:
Since B sold 75% of the total consignment, the remaining 25% is unsold.
Let the unsold goods have a cost of 'y'.

The surplus realized above the invoice price is Rs. 1,00,000 - (75% of invoice price).
The invoice price is 1.25x, so 75% of the invoice price is 0.75 * 1.25x = 0.9375x.
The surplus realized above the invoice price is Rs. 1,00,000 - 0.9375x.

The surplus commission is 25% of the surplus realized above the invoice price.
Surplus commission = 25% of (Surplus realized above the invoice price)
= 25% of (Rs. 1,00,000 - 0.9375x)
= 0.25 * (Rs. 1,00,000 - 0.9375x)
= 25000 - 0.234375x

Calculating the Total Commission Payable to B:
The total commission payable to B is the sum of the commission on sales and the surplus commission.
Total commission payable to B = Commission on sales + Surplus commission
= 0.125x + (25000 - 0.234375x)
= 0.125x + 25000 - 0.234375x
= 25000 - 0.109375x

Conclusion:
The amount of commission payable to B can be calculated using the formula 25000 - 0.109375x, where 'x' represents the cost of the goods sold by A to B.
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A of mumbai solds goods to b of chennai. The goods are to be sold at invoice price which represents 125% of cost. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?
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