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A salesperson sold 24 laptops at a 6% discount. Calculate her commission based on the tiered structure: 0% up to 500,000, 3% for 500,001-750,000, 5% for 750,001-1,000,000, and 8% above 1,000,000.

Business/Management

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Here's the solution to the problem:

a) During one month, she sold 24 laptops at 6% discount. Calculate:

a) (i) The amount of commission she earned in that month.

  1. Calculate the selling price of one laptop after the discount.

    Original price per laptop = Ksh. 42,000.
    Discount = 6%.
    Discount amount per laptop = 0.06×42,000=2,5200.06 \times 42,000 = 2,520 Ksh.
    Selling price per laptop = 42,000−2,520=39,48042,000 - 2,520 = 39,480 Ksh.

  2. Calculate the total sales value for 24 laptops.

    Total sales = 39,480×24=947,52039,480 \times 24 = 947,520 Ksh.

  3. Calculate the commission based on the total sales value.

    The commission structure is:

    • For sales up to Ksh. 500,000: 0% commission.
    • For the first Ksh. 250,000 above Ksh. 500,000 (i.e., from Ksh. 500,001 to Ksh. 750,000): 3% commission.
    • For the next Ksh. 250,000 (i.e., from Ksh. 750,001 to Ksh. 1,000,000): 5% commission.
    • For any amount above Ksh. 1,000,000: 8% commission.

    Commission calculation for Ksh. 947,520:

    • Sales up to Ksh. 500,000: No commission.
    • Sales from Ksh. 500,001 to Ksh. 750,000 (Ksh. 250,00
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