A salesman is allowed 9% commission on the total sale made by him and ...
Problem Statement
A salesman is allowed 9% commission on the total sale made by him and a bonus of 1% on the sales over 20,000 rs. If the total earning of the salesman is 6,800 rs, find the total sale?
Solution
Let us assume the total sales made by the salesman to be x rs.
Calculation of Commission
The salesman is allowed a commission of 9% on the total sales made by him.
Therefore, commission earned by the salesman = 9% of x rs
= 0.09x rs
Calculation of Bonus
The salesman is allowed a bonus of 1% on the sales made over 20,000 rs.
If the total sales made by the salesman are less than or equal to 20,000 rs, then the bonus earned by him would be 0.
If the total sales made by the salesman are greater than 20,000 rs, then the bonus earned by him would be (1% of sales made over 20,000 rs).
Therefore, bonus earned by the salesman = 1% of (x - 20,000) rs (if x > 20,000)
= 0.01(x - 20,000) rs (if x > 20,000)
Calculation of Total Earnings
The total earnings of the salesman is given to be 6,800 rs.
Therefore, commission earned by the salesman + bonus earned by the salesman = 6,800 rs.
0.09x + 0.01(x - 20,000) = 6,800
0.1x - 200 = 6,800
0.1x = 7,000
x = 70,000
Conclusion
Therefore, the total sales made by the salesman is 70,000 rs.