Student: Anup Dhar

Q. Mr.X,a sales person,earns 5% commission on all sales between Taka 20000 & 40000 & 8% on all sales exceeding 40000 in a month.He doesn`t earn any commission if sales in a month amount to less than Taka 20000.His monthly salary is Taka 60000,he has to pay tax 20% on his basic salary,but no tax on commission.in april,2001,the net income (salary+commission) of the sales person was Taka 65000.How much were the sales in April?


Answer :

Hi Anup,  Good Question.

Here is the method and solution.

Topic : Aptitude

Concept and Method :

  • Given Tax brackets are :

For Sales less than  20000,             Tax =  0
For Sales between 20000 - 40000,   Tax is  5% of 20000  so Tax =  1000
For Sales above  40000,   Tax = 8%  so Tax needs to find.

  • Salary 60000/pm.   Tax 20%  only on salary.

    Tax on salary = 20% of 60000 = 12000

  • Net income = Total income - Tax

    So  Total income = Net income  +  Tax

Hence Total income =  65000 + 12000  = 77000

So  Total income =  77000

  • Income from commissiom = Total income - salary
                            =  77000 - 60000 = 17000

Hence Income from Total commissiom =  17000

  • Commission for  Sale below 20000 =  0
    Commission for  Sale between 20000 - 40000  is 5%  

So   5% of 20000  = 1000

    Commission for  Sale between 20000 - 40000 = 1000

  • Got Total commission of 17000    

Remaining commission = 17000 - 1000 = 16000  (for sale above 40000)

  • Let x be sale above 40000
    then  8% of x = 16000
    so  8x/100 = 16000
    so  x = 16000 * 100 /8

    Hence     x = 200000
  • Total sales = sale below 2000 + sale between 20000 to 40000 + sale above 40000
    So Total sales = 20000 + 20000 + 200000 =   240000

Hence Total Sales = 240000 taka

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