A salesman's terms were changed from a flat commission of 5% on all his sales to a fixed salary of Rs.1000 plus 2.5% commission on all sales exceeding Rs. 4,000. If his remuneration as per new scheme was Rs. 600 more than that by the previous schema,
Q1. A salesman's terms were changed from a flat commission of 5% on all his sales to a fixed salary of Rs.1000 plus 2.5% commission on all sales exceeding Rs. 4,000. If his remuneration as per new scheme was Rs. 600 more than that by the previous schema,
Answer: Rs. 12,000
Explanation: New remuneration − old remuneration = 600: (1000 + 0.025(S−4000)) − 0.05S = 600. Solving gives S = Rs. 12,000.