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A salesman is allowed 5% commission on the total sales made by him plus a bonus of 1% on the excess of his sale over Rs. 20000. If the total earning is Rs. 1450 on commission alone, then find his total earnings?

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Rs. 1500

Rs. 1540

Rs. 1520

Rs. 1640

answer is B.

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Detailed Solution

Let the total sale be of Rs . x

According to question,

5 % of x = 1450

\frac{5}{100} x = 1450

5 x = 145000

x = 29000

Since the sale amount exceeds 20000, salesman earns 1 % bonus on excess

Total earnings = 1450 + 1 % of (29000 - 20000)

= 1450 + 1 % of 9000

= 1450 + 90

= 1540 Rs .

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