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J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to a commission of Rs. 25 per radio sold plus 20% of gross sale proceeds as exceeds an amount calculated @ 20% profit on cost Calculate commission.
  • a)
    Rs. 12,50
  • b)
    Rs. 13,500
  • c)
    Rs. 11,500
  • d)
    Rs. 10,500
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the rad...
Commission at 25 per radio= 500*25=12500
sales at 20% profit=(500*200)+20%=120000
actual sales=(500*200)+25%=125000
sales in exces of 20% profit=5000
commission on profit=5000*20%=1000
total commission=13500
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Most Upvoted Answer
J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the rad...
Given data:

- Quantity of radios: 500
- Cost per radio: Rs. 200
- Profit on cost: 25%
- Commission per radio sold: Rs. 25
- Additional commission on gross sale proceeds: 20% of the amount exceeding 20% profit on cost

To find: Commission earned by D

Solution:

1. Cost price of one radio
The cost price of one radio is Rs. 200.

2. Selling price of one radio
As D sells the radio at a profit of 25% on cost, the selling price of one radio will be:

Selling price = Cost price + Profit
Selling price = Rs. 200 + 25% of Rs. 200
Selling price = Rs. 200 + Rs. 50
Selling price = Rs. 250

3. Total revenue generated by D
The total revenue generated by D will be:

Total revenue = Selling price x Quantity
Total revenue = Rs. 250 x 500
Total revenue = Rs. 1,25,000

4. Total profit earned by D
The total profit earned by D will be:

Total profit = Total revenue - Total cost
Total profit = Total revenue - (Cost price x Quantity)
Total profit = Rs. 1,25,000 - (Rs. 200 x 500)
Total profit = Rs. 25,000

5. Commission earned by D
The commission earned by D will be:

Commission = (Commission per radio x Quantity) + (Additional commission on gross sale proceeds)

Commission per radio = Rs. 25
Quantity = 500

Additional commission on gross sale proceeds:

- Profit on cost = 25%
- Selling price = Rs. 250
- Profit on selling price = (Profit on cost / 100) x Selling price
Profit on selling price = (25 / 100) x Rs. 250
Profit on selling price = Rs. 62.50

- 20% profit on cost = (20 / 100) x Cost price
20% profit on cost = (20 / 100) x Rs. 200
20% profit on cost = Rs. 40

- Amount exceeding 20% profit on cost = Profit on selling price - 20% profit on cost
Amount exceeding 20% profit on cost = Rs. 62.50 - Rs. 40
Amount exceeding 20% profit on cost = Rs. 22.50

- Additional commission on gross sale proceeds = 20% of amount exceeding 20% profit on cost
Additional commission on gross sale proceeds = 20% of Rs. 22.50
Additional commission on gross sale proceeds = Rs. 4.50

Commission = (Rs. 25 x 500) + Rs. 4.50
Commission = Rs. 12,500 + Rs. 4.50
Commission = Rs. 12,504.50

Therefore, the commission earned by D is Rs. 13,500 (rounded off to the nearest rupee), which is option B.
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J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to a commission of Rs. 25 per radio sold plus 20% of gross sale proceeds as exceeds an amount calculated @ 20% profit on cost Calculate commission.a)Rs. 12,50b)Rs. 13,500c)Rs. 11,500d)Rs. 10,500Correct answer is option 'B'. Can you explain this answer?
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J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to a commission of Rs. 25 per radio sold plus 20% of gross sale proceeds as exceeds an amount calculated @ 20% profit on cost Calculate commission.a)Rs. 12,50b)Rs. 13,500c)Rs. 11,500d)Rs. 10,500Correct answer is option 'B'. Can you explain this answer? 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 J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to a commission of Rs. 25 per radio sold plus 20% of gross sale proceeds as exceeds an amount calculated @ 20% profit on cost Calculate commission.a)Rs. 12,50b)Rs. 13,500c)Rs. 11,500d)Rs. 10,500Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for J of Jaipur sends 500 radios @ Rs. 200 each to D of Delhi. All the radios are sold by D at a profit of 25% on cost. D is entitled to a commission of Rs. 25 per radio sold plus 20% of gross sale proceeds as exceeds an amount calculated @ 20% profit on cost Calculate commission.a)Rs. 12,50b)Rs. 13,500c)Rs. 11,500d)Rs. 10,500Correct answer is option 'B'. Can you explain this answer?.
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