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I can't understand this question. Please explain.
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Best Answer
Cost of goods sold = 3/5 * 1,00,000 = Rs. 60,000 Selling Price of goods sold = Rs. 70,000 Ordinary Commission = 2% on Rs. 70,000 = Rs. 1,400 Now, Let the extra commission be Rs. X Therefore, According to Problem: X = 20% [(70,000 - 1,400 - X) - 60,000] or, X = 1/5 * (8,600 - X) or, 5X = 8,600 - X or, X = 8,600/6 = 1,433 Therefore, Total Commission = Rs. (1,400 + 1,433) = Rs. 2,833
