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Evans earns a 2% commission on goods sold up to Ksh. 200,000 and 5% on goods sold over Ksh. 200,000. If Evans sold goods worth Ksh. 600,000, what is his total commission?

Business/Management

ScanSolve AI Answer

Step-by-step solution

2 steps
  1. Calculate the first commission.

    Evans earns a 2% commission on goods sold up to Ksh. 200,000.

    Commission1=2%×200,000\text{Commission}_1 = 2\% \times 200,000 Commission1=2100×200,000=4,000 Ksh\text{Commission}_1 = \frac{2}{100} \times 200,000 = 4,000 \text{ Ksh}
  2. Calculate the amount of goods sold over Ksh.

    200,000.
    Total goods sold = Ksh. 600,000.
    Amount over = Total goods sold - Ksh. 200,000

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