Question

A salesman gets a commission of 12% on the sales of products. He sold products worth 67000 last month. This month, the company changed the payment structure. A salesman would get a fixed pay of 5000 and 8% commission on the sales exceeding 32000. If he makes a sale of 67000, his earning from the previous month will reduce by

• A. 2%
• B. 3%
• C. 4%
• D. 5%

Hint:

In percentage comparison problems, always calculate the original value first and then compare the change with respect to the original amount.

Answer 1

The Correct Option is B

Step 1: Calculate the earning in the previous month.
Commission rate = 12%
Sales = 67000
\[ \text{Previous earning} = 12% \text{ of } 67000 = \frac{12}{100} \times 67000 = 8040 \]
Step 2: Calculate the earning in the current month.
Fixed pay = 5000
Sales exceeding 32000 = \(67000 - 32000 = 35000\)
Commission = 8% of 35000
\[ \text{Commission} = \frac{8}{100} \times 35000 = 2800 \]
\[ \text{Current earning} = 5000 + 2800 = 7800 \]
Step 3: Find the reduction in earnings.
\[ \text{Reduction} = 8040 - 7800 = 240 \]
Step 4: Calculate the percentage reduction.
\[ \text{Percentage reduction} = \frac{240}{8040} \times 100 \approx 2.99% \approx 3% \]
Final Answer:
\[ \boxed{3%} \]