Mr. X, a sales person earns 5% commission on all sales between Tk.20000 and 40000 and 8% on all sales exceeding Tk.40000 in a month. He does not earn any commission if sales in a month amount to less than Tk. 20000. His monthly salary is Tk.60000,he has to pay tax 20% tax on his basic salary ,but no tax on commission ,in April 2001,the total net income (salary +commission) of the sales person was Tk 65000. How much were the sales in April

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• 8 years agoHelpfull: Yes(0) No(0)
• Mr. X has to pay 20% tax, hence, his net basic salary will be 80% of 60,000 = Tk 48,000.
  
  He received Tk 65,000 as the total income = basic salary + commission.
  
  OR only commission will be = 65,000 - basic salary
  
  OR commission (C) = 65,000 - 48,000
  
  OR C = Tk 17,000
  
  Now, if the sales were simply 40,000 , he would have received a commission of 5% of 40,000 = Tk 2,000.
  
  But his Commission is Tk 17,000 and exceeds Tk 2,000 by = Tk 17,000 - Tk 2,000 = Tk 15,000;
  
  Hence, definitely, this extra 15,000 income is the 8% commission from the sales above Tk 40,000.
  
  Let the total sales value be Tk A ; hence, value above 40,000 => (A - 40,000).
  
  Or (8/100) x (A - 40,000) = 15,000
  
  Or A - 40,000 = 187500
  
  Or A =Total sales = Tk 2,27,500.
• 6 years agoHelpfull: Yes(0) No(0)