A company producing plastic goods gives commission to its seller at the rate of:
- [tex]$1\%$[/tex] for a selling amount up to Rs. [tex]$6,00,000$[/tex]
- [tex]$1.5\%$[/tex] for a selling amount above Rs. [tex]$6,00,000$[/tex] up to Rs. [tex]$10,00,000$[/tex]
- [tex]$2\%$[/tex] for a selling amount above Rs. [tex]$10,00,000$[/tex]

Find the amount of commission received by the seller for the following selling amounts:

(a) Rs. [tex]$4,45,600$[/tex]
(b) Rs. [tex]$7,25,000$[/tex]
(c) Rs. [tex]$15,75,000$[/tex]



Answer :

Sure, let's go through each part step-by-step to determine the commission received by the seller.

### Commission Rate Breakdown:
1. 1% commission for a selling amount up to Rs. 600,000.
2. 1.5% commission for a selling amount above Rs. 600,000 up to Rs. 1,000,000.
3. 2% commission for a selling amount above Rs. 1,000,000.

### Part (a): Rs. 445,600

Since Rs. 445,600 is less than Rs. 600,000, the commission rate of 1% applies to the entire amount.

[tex]\[ \text{Commission} = 445,600 \times \frac{1}{100} = 4456.0 \][/tex]

### Part (b): Rs. 725,000

Since Rs. 725,000 falls into the range where we have to apply different rates, we compute the commission as follows:
1. For the first Rs. 600,000: 1% commission.
2. For the amount exceeding Rs. 600,000 (i.e., Rs. 725,000 - Rs. 600,000 = Rs. 125,000): 1.5% commission.

[tex]\[ \text{Commission} = 600,000 \times \frac{1}{100} + 125,000 \times \frac{1.5}{100} \][/tex]

[tex]\[ \text{Commission} = 6,000 + 1,875 = 7,875.0 \][/tex]

### Part (c): Rs. 1,575,000

Since Rs. 1,575,000 is greater than Rs. 1,000,000, we compute the commission as follows:
1. For the first Rs. 600,000: 1% commission.
2. For the next Rs. 400,000 (i.e., Rs. 1,000,000 - Rs. 600,000): 1.5% commission.
3. For the amount exceeding Rs. 1,000,000 (i.e., Rs. 1,575,000 - Rs. 1,000,000 = Rs. 575,000): 2% commission.

[tex]\[ \text{Commission} = 600,000 \times \frac{1}{100} + 400,000 \times \frac{1.5}{100} + 575,000 \times \frac{2}{100} \][/tex]

[tex]\[ \text{Commission} = 6,000 + 6,000 + 11,500 = 23,500.0 \][/tex]

### Summary of Commissions:
(a) Rs. 445,600 [tex]\(\rightarrow\)[/tex] Rs. 4456.0

(b) Rs. 725,000 [tex]\(\rightarrow\)[/tex] Rs. 7875.0

(c) Rs. 1,575,000 [tex]\(\rightarrow\)[/tex] Rs. 23,500.0