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Examveda

A sales executive gets 20% bonus of the total sales value and 10% commission besides the bonus on the net profit after charging such commission. If the total sales value be Rs. 10 lakh per annum and the total profit of the company be Rs. 1.32 lakh, then his total earning per annum will be, given that he is not entitled to receive any fixed salary from the company :

A. 2.3 lakh

B. 2.32 lakh

C. 2.12 lakh

D. 3.2 lakh

E. None of these

Answer: Option C

Solution(By Examveda Team)

$$\eqalign{ & {\text{His bonus}}, \cr & = \frac{{ {20 \times 1000000} }}{{100}} \cr & = 2\, \text{lakh} \cr & {\text{Total}}\,{\text{profit}} = {\text{Net}}\,{\text{profit}} + \frac{{ {10 \times {\text{net}}\,{\text{profit}}} }}{{100}} \cr & 1.32\,\text{lakh} = {\text{Net}}\,{\text{profit}} \times \left[ {1 + {\frac{{10}}{{100}}} } \right] \cr & {\text{Net}}\,{\text{profit}} = \frac{{132000}}{{1.1}} = 120000 \cr & {\text{Commission}}, \cr & = \left( {{\text{Total}}\,{\text{profit}} - {\text{Net}}\,{\text{profit}}} \right) \cr & = 132000 - 120000 \cr & = 12000 \cr & {\text{Hence}}, {\text{his}}\,{\text{total}}\,{\text{earnings}} \cr & = 2\,\text{lakh} + 12000 \cr & = Rs.\,212000 \cr} $$

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