Unit 3 Commission, Bonus and Dividend
Solution of CDC Mathematics - Book 9
Exercise 3.1
1. Find the amount of commission based on the given table:
S.N.| Particulars (Items) | Total Selling Price | Rate of Commission
(a) | Land | Rs. 1 crore 50 lakh | 5%
(b) | House | Rs. 2 crore | 3%
(c) | Photocopy machine | Rs. 4 lakh | 7.5%
(d) | Share transaction | Rs. 5 crore 25 lakh | 2%
Solution:
(a) Land
Total Selling Price = Rs. 1 crore 50 lakh = 1,00,00,000 + 50,00,000 = 1,50,00,000 Rs
Rate of Commission = 5%
We know that,
Commission = Rate of Commission × Total Selling Price
= (5/100) × 1,50,00,000
= 7,50,000
Thus, the commission for the land is: Rs 7,50,000.
(b) House
Total Selling Price = Rs. 2 crore = 2,00,00,000 Rs
Rate of Commission = 3%
We know that,
Commission = Rate of Commission × Total Selling Price
= (3/100) × 2,00,00,000
= 6,00,000
Thus, the commission for the house is: Rs 6,00,000.
(c) Photocopy Machine
Total Selling Price = Rs. 4 lakh = 4,00,000 Rs
Rate of Commission = 7.5%
We know that,
Commission = Rate of Commission × Total Selling Price
= (7.5/100) × 4,00,000
= 30,000
Thus, the commission for the photocopy machine is: Rs 30,000.
(d) Share Transaction
Total Selling Price = Rs. 5 crore 25 lakh = 5,00,00,000 + 25,00,000 = 5,25,00,000 Rs
Rate of Commission = 2%
We know that,
Commission = Rate of Commission × Total Selling Price
= (2/100) × 5,25,00,000
= 10,50,000
Thus, the commission for the share transaction is: Rs 10,50,000.
2. If an agent receives 5% commission by selling a house for Rs. 1,40,00,000 then,
(a) How much amount does the agent receive as the commission?
(b) How much amount does the showroom have to pay to the employees for commission? Calculate.
Solution:
(a)
Here, Total Selling Price = Rs. 1,40,00,000
Rate of Commission = 5%
We know that,
Commission = Rate of Commission × Total Selling Price
= (5/100) × 1,40,00,000
= 7,00,000
Thus, the amount the agent receives as commission is: Rs 7,00,000.
(b)
Here, the problem refers to the showroom paying the employees, but since part (a) mentions an agent, we assume the commission calculated is the same amount the showroom pays.
Now, the commission amount is the same as calculated in part (a).
Then, this amount is: Rs 7,00,000
Thus, the amount the showroom has to pay to the employees for commission is: Rs 7,00,000.
3. A motorcycle showroom has 10 employees who get Rs. 20,000 as salary per month. They get 0.25% commission from the total monthly sale. If the total transaction in Asoj is Rs. 1,35,00,000,
(a) How much amount does the showroom provide to the employees as the commission? Calculate.
(b) What percentage is more in the monthly income of an employee than the monthly salary?
Solution:
(a)
Here, Total Selling Price = Rs. 1,35,00,000
Rate of Commission = 0.25%
Number of Employees = 10
We know that,
Total Commission = Rate of Commission × Total Selling Price
= (0.25/100) × 1,35,00,000
= 33,750
Thus, the amount the showroom provides to the employees as commission is: Rs 33,750.
(b)
Here, Total Commission = Rs 33,750
Number of Employees = 10
We know that,
Commission per Employee = Total Commission / Number of Employees
= 33,750 / 10
= 3,375
Now, Monthly Salary per Employee = Rs 20,000
Then, Total Monthly Income = Monthly Salary + Commission per Employee
= 20,000 + 3,375
= 23,375
Again, Increase in Income = Total Monthly Income - Monthly Salary
= 23,375 - 20,000
= 3,375
Next, Percentage Increase = (Increase in Income / Monthly Salary) × 100
= (3,375 / 20,000) × 100
= 16.875%
Thus, the percentage increase in the monthly income of an employee compared to the monthly salary is: 16.875%.
4. A company producing plastic goods gives commission to its seller at the rate of 1% in a selling amount up to Rs. 6,00,000, 1.5% above Rs. 6,00,000 up to Rs. 10,00,000, and 2% in a selling amount above Rs. 10,00,000, then find the amount of commission received by the seller in the following selling amount:
(a) Rs. 4,45,600
(b) Rs. 7,25,000
(c) Rs. 15,75,000
Solution:
(a)
Here, Selling Amount = Rs 4,45,600
Since the selling amount is less than Rs 6,00,000, the commission rate is 1%.
Rate of Commission = 1%
We know that,
Commission = Rate of Commission × Selling Amount
= (1/100) × 4,45,600
= 4,456
Thus, the commission received by the seller is: Rs 4,456.
(b)
Here, Selling Amount = Rs 7,25,000
Since the selling amount is between Rs 6,00,000 and Rs 10,00,000, the commission is calculated in two parts:
First part: For the first Rs 6,00,000 at 1%
We know that,
Commission for first part = (1/100) × 6,00,000
= 6,000
Second part: For the remaining amount (7,25,000 - 6,00,000 = 1,25,000) at 1.5%
Now, Commission for second part = (1.5/100) × 1,25,000
= 1,875
Then, Total Commission = Commission for first part + Commission for second part
= 6,000 + 1,875
= 7,875
Thus, the commission received by the seller is: Rs 7,875.
(c)
Here, Selling Amount = Rs 15,75,000
Since the selling amount is above Rs 10,00,000, the commission is calculated in three parts:
First part: For the first Rs 6,00,000 at 1%
We know that,
Commission for first part = (1/100) × 6,00,000
= 6,000
Second part: For the next Rs 4,00,000 (10,00,000 - 6,00,000) at 1.5%
Now, Commission for second part = (1.5/100) × 4,00,000
= 6,000
Third part: For the remaining amount (15,75,000 - 10,00,000 = 5,75,000) at 2%
Again, Commission for third part = (2/100) × 5,75,000
= 11,500
Next, Total Commission = Commission for first part + Commission for second part + Commission for third part
= 6,000 + 6,000 + 11,500
= 23,500
Thus, the commission received by the seller is: Rs 23,500.
5. The monthly salary of a staff working in a cosmetic shop is Rs. 17,000. He gets a certain percentage of commission on the total sales. In the month of Manshir he earns Rs. 30,000 including commission on the total selling price of Rs. 10,00,000 in that month, how much amount of commission does he get from the shop?
Solution:
Here, Total Monthly Income = Rs 30,000
Monthly Salary = Rs 17,000
We know that,
Commission = Total Monthly Income - Monthly Salary
= 30,000 - 17,000
= 13,000
Now, Total Selling Price = Rs 10,00,000
Then, Commission Rate = (Commission / Total Selling Price) × 100
= (13,000 / 10,00,000) × 100
= 1.3%
Thus, the amount of commission he gets from the shop is: Rs 13,000.
Exercise 3.2
1. Calculate the bonus based on the following table:
Company| Profit | Rate of Bonus
(a) | Rs. 60 lakh | 25%
(b) | Rs. 2 crore 50 lakh| 67.5%
(c) | Rs. 80 lakh | 48%
(d) | Rs. 9 crore | 55%
Solution:
(a)
Here, Profit = Rs. 60 lakh = 60,00,000 Rs
Rate of Bonus = 25%
We know that,
Bonus = Rate of Bonus × Profit
= (25/100) × 60,00,000
= 15,00,000
Thus, the bonus for company (a) is: Rs 15,00,000.
(b)
Here, Profit = Rs. 2 crore 50 lakh = 2,00,00,000 + 50,00,000 = 2,50,00,000 Rs
Rate of Bonus = 67.5%
We know that,
Bonus = Rate of Bonus × Profit
= (67.5/100) × 2,50,00,000
= 1,68,75,000
Thus, the bonus for company (b) is: Rs 1,68,75,000.
(c)
Here, Profit = Rs. 80 lakh = 80,00,000 Rs
Rate of Bonus = 48%
We know that,
Bonus = Rate of Bonus × Profit
= (48/100) × 80,00,000
= 38,40,000
Thus, the bonus for company (c) is: Rs 38,40,000.
(d)
Here, Profit = Rs. 9 crore = 9,00,00,000 Rs
Rate of Bonus = 55%
We know that,
Bonus = Rate of Bonus × Profit
= (55/100) × 9,00,00,000
= 4,95,00,000
Thus, the bonus for company (d) is: Rs 4,95,00,000.
2. A textile industry has made a profit of Rs. 5 lakhs and sixty thousand in the year 2076 BS. It has decided to distribute 60% of the profits as a bonus to 105 employees working in the industry, how much amount each will an employee receive? Find out.
Solution:
Here, Profit = Rs. 5 lakhs and sixty thousand = 5,00,000 + 60,000 = 5,60,000 Rs
Rate of Bonus = 60%
Number of Employees = 105
We know that,
Total Bonus = Rate of Bonus × Profit
= (60/100) × 5,60,000
= 3,36,000
Now, Total Bonus = Rs 3,36,000
Then, Bonus per Employee = Total Bonus / Number of Employees
= 3,36,000 / 105
= 3,200
Thus, the amount each employee will receive as bonus is: Rs 3,200.
3. An insurance company has decided to distribute two-thirds of the total profit equally to its 150 staffs as a bonus. If each staff receives Rs. 40,000, what is the total profit of the company in that year?
Solution:
Here, Number of Staff = 150
Bonus per Staff = Rs 40,000
We know that,
Total Bonus = Bonus per Staff × Number of Staff
= 40,000 × 150
= 60,00,000
Now, Total Bonus = Rs 60,00,000
Again, Total Bonus = (2/3) × Total Profit
= 60,00,000 = (2/3) × Total Profit
Then, Total Profit = 60,00,000 × (3/2)
= 90,00,000
Thus, the total profit of the company in that year is: Rs 90,00,000.
4. Calculate the total dividend and per-share dividend from the given table:
Company| Total number of shares | Rate of Dividend | Net profit
(a) | 4,50,000 | 40% |Rs. 50,00,000
(b) | 1,15,62,486 | 55.5% | Rs. 12,00,00,000
(c) | 3,28,50,000 | 23.5% |Rs. 5,20,60,000
(d) | 21,63,25,030 | 60% |Rs. 2,75,67,36,894
Solution:
(a)
Here, Net Profit = Rs. 50,00,000
Rate of Dividend = 40%
We know that,
Total Dividend = Rate of Dividend × Net Profit
= (40/100) × 50,00,000
= 20,00,000
Now, Total Number of Shares = 4,50,000
Then, Per-Share Dividend = Total Dividend / Total Number of Shares
= 20,00,000 / 4,50,000
= 4.44
Thus, the total dividend for company (a) is Rs 20,00,000 and the per-share dividend is Rs 4.44.
(b)
Here, Net Profit = Rs. 12,00,00,000
Rate of Dividend = 55.5%
We know that,
Total Dividend = Rate of Dividend × Net Profit
= (55.5/100) × 12,00,00,000
= 6,66,00,000
Now, Total Number of Shares = 1,15,62,486
Then, Per-Share Dividend = Total Dividend / Total Number of Shares
= 6,66,00,000 / 1,15,62,486
= 5.76
Thus, the total dividend for company (b) is Rs 6,66,00,000 and the per-share dividend is Rs 5.76.
(c)
Here, Net Profit = Rs. 5,20,60,000
Rate of Dividend = 23.5%
We know that,
Total Dividend = Rate of Dividend × Net Profit
= (23.5/100) × 5,20,60,000
= 1,22,34,100
Now, Total Number of Shares = 3,28,50,000
Then, Per-Share Dividend = Total Dividend / Total Number of Shares
= 1,22,34,100 / 3,28,50,000
= 0.37
Thus, the total dividend for company (c) is Rs 1,22,34,100 and the per-share dividend is Rs 0.37.
(d)
Here, Net Profit = Rs. 2,75,67,36,894
Rate of Dividend = 60%
We know that,
Total Dividend = Rate of Dividend × Net Profit
= (60/100) × 2,75,67,36,894
= 1,65,40,42,136.40
Now, Total Number of Shares = 21,63,25,030
Then, Per-Share Dividend = Total Dividend / Total Number of Shares
= 1,65,40,42,136.40 / 21,63,25,030
= 7.65
Thus, the total dividend for company (d) is Rs 1,65,40,42,136.40 and the per-share dividend is Rs 7.65.
5. Suryalaxmi Cooperative has 13,63,497 units of shares of Rs. 100 each. Mamata has 350 units of share of that cooperative. If that cooperative earns Rs. 1 crore and 20 lakh in one year and decides to distribute cash dividend to its shareholder equal to 45% of the profit, how much cash dividend does Mamata receive? Find out.
Solution:
Here, Profit = Rs. 1 crore and 20 lakh = 1,00,00,000 + 20,00,000 = 1,20,00,000 Rs
Rate of Dividend = 45%
Total Number of Shares = 13,63,497
Mamata’s Shares = 350
We know that,
Total Cash Dividend = Rate of Dividend × Profit
= (45/100) × 1,20,00,000
= 54,00,000
Now, Total Cash Dividend = Rs 54,00,000
Then, Per-Share Dividend = Total Cash Dividend / Total Number of Shares
= 54,00,000 / 13,63,497
= 3.96
Again, Mamata’s Cash Dividend = Per-Share Dividend × Mamata’s Shares
= 3.96 × 350
= 1,386
Thus, the cash dividend Mamata receives is: Rs 1,386.
6. An insurance company having 22,39,440 units of shares of Rs. 100 each earns profit Rs. 1,52,05,675 in a year. If the board of directors of that company has decided to distribute cash dividend to its shareholder equal to 65% of total profit, how much cash dividend does a shareholder holding 280 units of shares receive? Calculate.
Solution:
Here, Profit = Rs. 1,52,05,675
Rate of Dividend = 65%
Total Number of Shares = 22,39,440
Shareholder’s Shares = 280
We know that,
Total Cash Dividend = Rate of Dividend × Profit
= (65/100) × 1,52,05,675
= 98,83,688.75
Now, Total Cash Dividend = Rs 98,83,688.75
Then, Per-Share Dividend = Total Cash Dividend / Total Number of Shares
= 98,83,688.75 / 22,39,440
= 4.41
Again, Shareholder’s Cash Dividend = Per-Share Dividend × Shareholder’s Shares
= 4.41 × 280
= 1,234.80
Thus, the cash dividend a shareholder holding 280 units of shares receives is: Rs 1,234.80.
Solution of Vedanta Excel in Mathematics - Book 9
3.1 Commission
Commission is the amount of money paid to an agent (or an employee) for performing a business services such as buying and selling goods, property, etc. The commission is usually a percent of the selling price. The percent is called the commission rate.
1. Amount of commission = percent of commission × total selling price.
2. Commission percent = Commission amount S.P. × 100%
Worked-out examples
Example 1: A real estate company gives 1.5 % commission to its agent on selling a piece of land for Rs 20,00,000 and 2 % commission for additional amount of selling price above the fixed price. If the agent sold the land for Rs 28,50,000, how much commission did the agent receive?
Solution:
Here, the fixed selling price of the land = Rs 20,00,000
The selling price of the land = Rs 28,50,000
Now, the commission received by the agent = 1.5 % of Rs 20,00,000 + 2 % of (Rs 28,50,000 – Rs 20,00,000)
= 1.5 100 × Rs 20,00,000 + 2 100 × Rs 8,50,000
= Rs 30,000 + Rs 17,000
= Rs 47,000
Hence, the agent received the commission of Rs 47,000.
Example 2: A plywood factory provides commission to its dealers on the basis of the following monthly transactions.
Sales up to Rs 5,00,000, 4 % commission.
Sales from Rs 5,00,000 to Rs 7,50,000, 5 % commission.
Sales more than Rs 7,50,000, 6 % commission.
Calculate the commissions of the following monthly transaction of different dealers.
(i) Rs 4,80,000
(ii) Rs 7,20,000
(iii) Rs 8,60,000
Solution:
(i) Commission of the sale of Rs 4,80,000 = 4 % of Rs 4,80,000
= Rs 19,200
(ii) Commission of the sale of Rs 7,20,000 = 4 % of Rs 5,00,000 + 5 % of (Rs 7,20,000 – Rs 5,00,000)
= Rs 20,000 + Rs 11,000
= Rs 31,000
(iii) Commission of the sale of Rs 8,60,000 = 4% of Rs 5,00,000 + 5% of (Rs 7,50,000 – Rs 5,00,000) + 6% of (Rs 8,60,000 – Rs 7,50,000)
= Rs 20,000 + Rs 12,500 + Rs 6,600
= Rs 39,100
Example 3: The monthly salary of an employee in a publication house is Rs 30,000 and 2 % commission is provided when the monthly sales is more than Rs 5,00,000. If the sales of the publication house in a month is Rs 6,75,000, find the income of the employee in the month.
Commission, Bonus and Dividend
Rs 28,50,000 Rs 20,00,000 Rs 8,50,000 (1.5%) (2%)
Solution:
Here, the monthly salary of the employee = Rs 30,000
Commission percent = 2%
Sales of the month = Rs 6,75,000
Now, sales for the commission = Rs 6,75,000 – Rs 5,00,000 = Rs 1,75,000
Amount of commission = 2 % of Rs 1,75,000
= 2 100 × Rs 1,75,000
= Rs 3,500
Again, the income of the employee of the month = Rs 30,000 + Rs 3,500
= Rs 33,500
Hence, the income of the employee in the month is Rs 33,500.
Example 4: The monthly salary of an employee in a hardware shop is Rs 27,000 and a certain commission is given as per the monthly sales. If the sales of a month is Rs 5,00,000 and the total income of the employee of the month including commission is Rs 32,500, calculate the rate of commission.
Solution:
Here, the monthly salary of the employee = Rs 27,000
Sales of the month = Rs 5,00,000
Total income of the employee of the month = Rs 32,500
Now, the amount of commission of the month = Rs 32,500 – Rs 27,000
= Rs 5,500
Again, the rate of commission = Amount of commission Sales of the month × 100%
= 5,500 5,00,000 × 100%
= 1.1%
Hence, the required rate of commission is 1.1%.
EXERCISE 3.1
General section
1. Find the commission amount received by agent from the table given below.
S.N .| Property | Total sale | Rate of commission | Commission
a) Land | Rs 60,50,000 | 1% | ……….
b) House | Rs 2,40,00,000 | 1.5% |……….
c) Car |Rs 60,00,000 | 2% | ……….
a)
Solution:
Here, selling price of land = Rs 60,50,000
Rate of commission = 1%
Amount of commission = ?
We know that,
Amount of commission = percent of commission × total selling price.
= 1% of Rs 60,50,000
= (1/100) x 60,50,000
= 60,500
Thus, the commission for the land is: Rs 60,500.
b)
Solution:
Here, selling price of house = Rs 2,40,00,000
Rate of commission = 1.5%
Amount of commission = ?
We know that,
Amount of commission = percent of commission × total selling price.
= 1.5% of Rs 2,40,00,000
= (1.5/100) x 2,40,00,000
= 3,60,000
Thus, the commission for the house is: Rs 3,60,000.
c)
Solution:
Here, selling price of car = Rs 60,00,000
Rate of commission = 2%
Amount of commission = ?
We know that,
Amount of commission = percent of commission × total selling price.
= 2% of Rs 60,00,000
= (2/100) x 60,00,000
= 1,20,000
Thus, the commission for the car is: Rs 1,20,000.
Final Answer:
Property| Total Sale | Rate of Commission | Commission
a) Land | Rs 60,50,000 | 1% | Rs 60,500
b) House| Rs 2,40,00,000 | 1.5% | Rs 3,60,000
c) Car | Rs 60,00,000 | 2% | Rs 1,20,000
2. a) An agent gets 1.5% commission while selling a house for Rs 2 crores 50 lakhs.
(i) How much commission will the agent get?
(ii) How much amount will the house owner get after paying the commission?
b) A real estate company gives 3% commission to it’s agents. An agent sold a piece of land for Rs 12,50,000.
(i) How much commission will the agent get?
(ii) How much amount will the company receive after paying the commission?
2. a)
(i)
Solution:
Here, selling price of the house = Rs 2,50,00,000
Rate of commission = 1.5%
Commission amount = ?
We know that,
Commission Amount = Rate of Commission × Selling Price
= 1.5% of Rs 2,50,00,000
= (1.5/100) x 2,50,00,000
= 3,75,000
Thus, the commission the agent will get is: Rs 3,75,000.
(ii)
Solution:
Amount received by owner = Selling Price - Commission Amount
= 2,50,00,000 - 3,75,000
= 2,46,25,000
Thus, the amount the house owner will get is: Rs 2,46,25,000.
2. b)
(i)
Solution:
Here, selling price of the land = Rs 12,50,000
Rate of commission = 3%
Commission amount = ?
We know that,
Commission Amount = Rate of Commission × Selling Price
= 3% of Rs 12,50,000
= (3/100) x 12,50,000
= 37,500
Thus, the commission the agent will get is: Rs 37,500.
(ii)
Solution:
Amount received by company = Selling Price - Commission Amount
= 12,50,000 - 37,500
= 12,12,500
Thus, the amount the company will receive is: Rs 12,12,500.
3. a) An automobile company gives 10% commission to it’s agents for selling second-hand motorbike. If an agent received Rs 16,290 by selling a scooter, at what price did the agent sell the scooter?
b) A farmer sold his seasonal vegetables through an agent by giving 2% commission. If the agent got Rs 2,200 commission, at what price did the agent sell the vegetables?
c) Mr. Kulman sold a piece of land through a real estate agent. After paying commission at the rate of 3.5% to the real estate agent, he received Rs 1,78,52,500 for selling his land. Calculate the selling price of the land.
d) A noodles factory gives 10% commission to a wholesaler for selling its products. After giving the commission to the wholesaler, the company receives Rs 3,15,000 in Baishakh. Find the total sales of noodles by the wholesaler in Baishakh.
3. a)
Solution:
Here, Commission rate = 10%, Commission amount = Rs 16,290
We know that,
Commission Amount = Rate of Commission × Selling Price
Rearranging for Selling Price:
Selling Price = Commission Amount / Rate of Commission
= 16,290 / (10/100)
= 16,290 / 0.1
= 1,62,900
Thus, the selling price of the scooter is: Rs 1,62,900.
3. b)
Solution:
Here, Commission rate = 2%, Commission amount = Rs 2,200
We know that,
Selling Price = Commission Amount / Rate of Commission
= 2,200 / (2/100)
= 2,200 / 0.02
= 1,10,000
Thus, the selling price of the vegetables is: Rs 1,10,000.
3. c)
Solution:
Let the selling price be x. Then:
Amount received by Mr. Kulman = Selling Price - Commission
1,78,52,500 = x - (3.5% × x)
or, 1,78,52,500 = x - 0.035x
or, 1,78,52,500 = 0.965x
or, x = 1,78,52,500 / 0.965
or, x = 1,85,00,000
Thus, the selling price of the land is: Rs 1,85,00,000.
3. d)
Solution:
Let the total sales be x. Then:
Amount received by the company = Total Sales - Commission
3,15,000 = x - (10% × x)
or, 3,15,000 = x - 0.1x
or, 3,15,000 = 0.9x
or, x = 3,15,000 / 0.9
or, x = 3,50,000
Thus, the total sales of noodles is: Rs 3,50,000.
4. a) If a sales agent received Rs 30 thousands commission when he sold a second hand taxi for Rs 12 lakhs, what rate of commission did he get?
b) A building owner fixed the cost of his building as Rs 27,50,400 and the price above the fixed cost goes to an agent as his commission. If the agent sold it for Rs 29,01,672, find his commission percent.
4. a)
Solution:
Here, Commission amount = Rs 30,000, Selling price of the taxi = Rs 12,00,000
We know that,
Rate of Commission = (Commission Amount / Selling Price) × 100
= (30,000 / 12,00,000) × 100
= 0.025 × 100
= 2.5%
Thus, the rate of commission is: 2.5%.
4. b)
Solution:
Here, Fixed cost of the building = Rs 27,50,400, Selling price of the building = Rs 29,01,672
Commission Amount = Selling Price - Fixed Cost
= 29,01,672 - 27,50,400
= 1,51,272
Rate of Commission = (Commission Amount / Selling Price) × 100
= (1,51,272 / 29,01,672) × 100
= 0.0521 × 100
= 5.21%
Thus, the rate of commission is: 5.21%.
Creative section
5. a) A real estate company gives 5 % commission on selling a piece of land for Rs 10,00,000 and 7 % commission for the additional amount of selling price above the fixed price. If the agent sold the land for Rs 12,99,000, how much commission did he/she receive from the company?
b) An insurance company offered 2 % commission for the first 10 lakh and 2.5 % for the rest sum of money collected from new clients by its agents. If an agent is able to collect a sum of Rs 15,30,000 from his new clients, find his total commission.
c) A noodle factory provides commission to its sales agents on the basis of the following weekly transactions.
Sales Rate of commissions
Upto Rs 50,000 2.5 %
From 50,000 - Rs 1,00,000 5%
Above Rs 1,00,000 6%
Now, calculate the commission of the following weekly sales.
(i) Rs 48,600
(ii) Rs 72,500
(iii) Rs 1,10,700
5. a)
Solution:
Here, Fixed price = Rs 10,00,000, Selling price = Rs 12,99,000
Additional Selling Price = 12,99,000 - 10,00,000 = 2,99,000
Commission on first 10,00,000 (5%) = (5/100) × 10,00,000 = 50,000
Commission on additional 2,99,000 (7%) = (7/100) × 2,99,000 = 20,930
Total Commission = 50,000 + 20,930 = 70,930
Thus, the total commission is: Rs 70,930.
5. b)
Solution:
Here, Total amount collected = Rs 15,30,000
Additional Amount = 15,30,000 - 10,00,000 = 5,30,000
Commission on first 10,00,000 (2%) = (2/100) × 10,00,000 = 20,000
Commission on additional 5,30,000 (2.5%) = (2.5/100) × 5,30,000 = 13,250
Total Commission = 20,000 + 13,250 = 33,250
Thus, the total commission is: Rs 33,250.
5. c)
(i) Rs 48,600
Solution:
Entire amount falls under 2.5% range.
Commission = (2.5/100) × 48,600 = 1,215
Thus, the commission is: Rs 1,215.
(ii) Rs 72,500
Solution:
First 50,000 at 2.5%, remaining 22,500 at 5%.
Commission on 50,000 = (2.5/100) × 50,000 = 1,250
Commission on 22,500 = (5/100) × 22,500 = 1,125
Total Commission = 1,250 + 1,125 = 2,375
Thus, the commission is: Rs 2,375.
(iii) Rs 1,10,700
Solution:
First 50,000 at 2.5%, next 50,000 at 5%, remaining 10,700 at 6%.
Commission on 50,000 at 2.5% = (2.5/100) × 50,000 = 1,250
Commission on 50,000 at 5% = (5/100) × 50,000 = 2,500
Commission on 10,700 at 6% = (6/100) × 10,700 = 642
Total Commission = 1,250 + 2,500 + 642 = 4,392
Thus, the commission is: Rs 4,392.
6. a) The monthly salary of a salesperson of a subway restaurant is Rs 21,600, and an additional incentive of 1.5 % on the total monthly sale is provided as commission.
(i) Calculate his/her total income in a month if he/she makes a total sale of Rs 5,80,000 in that month.
(ii) What should be his/her total sale in the next month so that he/she can receive a total income of Rs 31,350 in the month?
(i)
Solution:
Here, Monthly salary = Rs 21,600, Total monthly sale = Rs 5,80,000, Rate of commission = 1.5%
Commission = Rate of Commission × Total Monthly Sale
= (1.5/100) × 5,80,000
= 8,700
Total Income = Monthly Salary + Commission
= 21,600 + 8,700
= 30,300
Thus, the total income is: Rs 30,300.
(ii)
Solution:
Here, Monthly salary = Rs 21,600, Total income = Rs 31,350, Rate of commission = 1.5%
Commission = Total Income - Monthly Salary
= 31,350 - 21,600
= 9,750
Total Monthly Sale = Commission / Rate of Commission
= 9,750 / (1.5/100)
= 9,750 / 0.015
= 6,50,000
Thus, the total monthly sale required is: Rs 6,50,000.
b) Mr. Bibek is an online salesperson in an online shopping store. His monthly salary is Rs 18,700 and 2% commission is given to him when the monthly sales is more than 5 lakh rupees. If the sales of the store in a month is Rs 7,20,000, calculate his total income of the month.
c) Mrs. Nepali draws Rs 19,800 as her monthly salary in a wholesale cosmetic shop and a certain commission is given as per the monthly sales. The sales of a month is Rs 12,00,000 and her total income of the month including commission is Rs 31,800.
(i) Find the rate of commission
(ii) If the sales of the previous month was Rs 15,00,0000 and the commission was given to her at the same rate, what was her income of previous month?
6. b)
Solution:
Here, Monthly salary = Rs 18,700, Total sales = Rs 7,20,000, Rate of commission = 2% (on sales above Rs 5,00,000).
Eligible Sales = Total Sales - 5,00,000
= 7,20,000 - 5,00,000
= 2,20,000
Commission = Rate of Commission × Eligible Sales
= (2/100) × 2,20,000
= 4,400
Total Income = Monthly Salary + Commission
= 18,700 + 4,400
= 23,100
Thus, the total income is: Rs 23,100.
6. c)
(i)
Solution:
Here, Monthly salary = Rs 19,800, Total sales = Rs 12,00,000, Total income = Rs 31,800.
Commission = Total Income - Monthly Salary
= 31,800 - 19,800
= 12,000
Rate of Commission = (Commission / Total Sales) × 100
= (12,000 / 12,00,000) × 100
= 1%
Thus, the rate of commission is: 1%.
(ii) If the sales of the previous month were Rs 15,00,000 and the commission was given at the same rate, what was her income for the previous month?
Solution:
Here, Monthly salary = Rs 19,800, Total sales = Rs 15,00,000, Rate of commission = 1%.
Commission = Rate of Commission × Total Sales
= (1/100) × 15,00,000
= 15,000
Total Income = Monthly Salary + Commission
= 19,800 + 15,000
= 34,800
Thus, her total income for the previous month is: Rs 34,800.
7. a) Mr. Ghising decides to sell a plot of 10 Aanas of land he owns at the rate of Rs 5,00,000 per Aana. He promises a commission of 3% on the sale of the land to a broker. If he gives a discount of 2% on the original price to the buyer, find his income from the sale of the land, after paying the commission to the broker.
7. a)
Mr. Ghising decides to sell a plot of 10 Aanas of land he owns at the rate of Rs 5,00,000 per Aana. He promises a commission of 3% on the sale of the land to a broker. If he gives a discount of 2% on the original price to the buyer, find his income from the sale of the land, after paying the commission to the broker.
Solution:
Here, Rate per Aana = Rs 5,00,000, Total land = 10 Aanas.
Original Price = Rate per Aana × Total Land
= 5,00,000 × 10
= 50,00,000
Now, discount = 2% on the original price
= (2/100) × 50,00,000
= 1,00,000
Again, selling price after discount = Original Price - Discount
= 50,00,000 - 1,00,000
= 49,00,000
Commission = 3% on the selling price
= (3/100) × 49,00,000
= 1,47,000
Income after paying commission = Selling Price - Commission
= 49,00,000 - 1,47,000
= 47,53,000
Thus, Mr. Ghising's income from the sale of the land is: Rs 47,53,000.
b) Mr. Chauhan is a car dealer who purchases a car for Rs 50,00,000. He intends selling the car for Rs 55,00,000. However, he gives a discount of 3% on this price to the buyer and a commission of 2% to a broker. How much profit does he make?
7. b)
Mr. Chauhan is a car dealer who purchases a car for Rs 50,00,000. He intends selling the car for Rs 55,00,000. However, he gives a discount of 3% on this price to the buyer and a commission of 2% to a broker. How much profit does he make?
Solution:
Here, Cost price of the car = Rs 50,00,000, Intended selling price = Rs 55,00,000.
Discount = 3% on the intended selling price
= (3/100) × 55,00,000
= 1,65,000
Discounted Selling Price = Intended Selling Price - Discount
= 55,00,000 - 1,65,000
= 53,35,000
Commission = 2% on the discounted selling price
= (2/100) × 53,35,000
= 1,06,700
Net Amount Received = Discounted Selling Price - Commission
= 53,35,000 - 1,06,700
= 52,28,300
Profit = Net Amount Received - Cost Price
= 52,28,300 - 50,00,000
= 2,28,300
Thus, Mr. Chauhan's profit is: Rs 2,28,300.
Final Answer:
Profit = Rs 2,28,300
3.2 Bonus
b) The board of management of an enterprise had decided to distribute equal amount of bonus to its 50 employees from 10% of its net profit.
Bonus is calculated as a certain percent of profit and it is decided by the board of management of any business organization.
Facts to remember:
1. Total bonus amount = Rate of bonus × Net profit
2. Bonus rate = Total bonus amount Net profit × 100%
3. Bonus amount received by each employee = Total bonus amount Number of employees
Example 1: The annual salary of an employee in a business company is Rs 3,02,400. Besides, the company provides 15% bonus from its net profit at the end of each fiscal year. If the company made a profit of Rs 60,50,000 in a fiscal year and decided to distribute bonus to its 30 employees equally, how much income did the employee make in the year?
Solution:
Here, the annual salary of the employee = Rs 3,02,400
Profit of the company = Rs 60,50,000
The total amount of bonus = 15 % of Rs 60,50,000
= Rs 9,07,500
Now, the amount of bonus received by each employee = Rs 907500 30
= Rs 30,250
Again, the annual income of the employee = Rs 3,02,400 + Rs 30,250
= Rs 3,32,650
Hence, the employee made an income of Rs 3,32,650 in the year.
Example 2: A cement factory made a net profit of Rs 2,60,00,000 in the last year. The management of the factory decided to distribute 10% bonus from the profit to its 130 employees equally.
(i) By what percent should the bonus be increased so that each employee can receive Rs 30,000?
(ii) What should be the profit of the factory so that it can provide Rs 44,500 to each employee at 20% bonus?
Solution:
Here, net profit of the factory = Rs 2,60,00,000, bonus percent = 10% and of employees = 130
(i) Bonus amount received by each employee = Rs 30,000, bonus percent = ?
Bonus amount =130× Rs 30,000
= Rs 39,00,000
Bonus percent = Total bonus amount Net profit × 100%
= Rs 39,00,000 Rs 2,60,000 × 100%
= 15%
Hence, the bonus should be increased by 15% - 10% = 5%
(ii) Bonus percent= 20%, number of employees = 130, Bonus amount received by each worker = Rs 44,500
Now, bonus amount =130× Rs 44,500
= Rs 57,85,000
Let, net profit of the factory be Rs x
Then, bonus amount = bonus % of net profit
or, Rs 57,85,000 = 20% of x
or, 57,85,000 = 20x 100
∴ x = Rs 2,89,25,000
Hence, the profit of the factory should be Rs 2,89,25,000.
Example 3: When a commercial bank increased its profit from 20% to 25%, the amount of profit increased to Rs 1,25,00,000. If the company decided to distribute 80% bonus to its 50 employees equally from the increased amount of profit, how much bonus will each employee receive?
Solution:
Let, the annual income of the bank be Rs x.
According to question, 25% profit of the income = Rs 1,25,00,000
or, 25 100 × x = Rs 1,25,00,000
∴ x = Rs 5,00,00,000
When the profit was 20%, profit amount = 20% of Rs Rs 5,00,00,000
= Rs 1,00,00,000
Increased amount of profit = Rs 1,25,00,000 – Rs 1,00,00,000
= Rs 25,00,000
Now, bonus amount = 80% of Rs 25,00,000
= Rs 20,00,000
∴ Bonus amount received by each employee = Bonus amount Number of employees
= Rs 20,00,000 50
= Rs 40,000
Hence, each employee received Rs 40,000 bonus.
EXERCISE 3.2
General section
1. Calculate the bonus amount distributed by each of the following companies from the table given below.
S.N.| Company | Net profit | Bonus rate | Total bonus amount
a) Restaurant Rs 50,00,000 10% ……….
b) Bike showroom Rs 65,00,000 15% ……….
c) Insurance company Rs 90,80,500 20% ……….
1. Calculate the bonus amount distributed by each of the following companies from the table given below.
S.N.| Company | Net profit | Bonus rate | Total bonus amount
a) Restaurant Rs 50,00,000 10% ……….
b) Bike showroom Rs 65,00,000 15% ……….
c) Insurance company Rs 90,80,500 20% ……….
a) Restaurant
Solution:
Here, Net profit = Rs 50,00,000, Bonus rate = 10%
Total Bonus Amount = Bonus Rate × Net Profit
= (10/100) × 50,00,000
= 5,00,000
Thus, the total bonus amount distributed by the restaurant is: Rs 5,00,000.
b) Bike Showroom
Solution:
Here, Net profit = Rs 65,00,000, Bonus rate = 15%
Total Bonus Amount = Bonus Rate × Net Profit
= (15/100) × 65,00,000
= 9,75,000
Thus, the total bonus amount distributed by the bike showroom is: Rs 9,75,000.
c) Insurance Company
Solution:
Here, Net profit = Rs 90,80,500, Bonus rate = 20%
Total Bonus Amount = Bonus Rate × Net Profit
= (20/100) × 90,80,500
= 18,16,100
Thus, the total bonus amount distributed by the insurance company is: Rs 18,16,100.
2. a) A publication house announced to distribute 10 % bonus equally to its 20 employees from the net profit of Rs 18,36,000 at the end of a fiscal year, find the bonus received by each employee.
2. a)
Solution:
Here, the net profit of the publication house = Rs 18,36,000, Bonus rate = 10%, and the number of employees = 20.
Now, the total bonus amount is calculated as:
Total Bonus Amount = Bonus Rate × Net Profit
= (10/100) × 18,36,000
= 1,83,600
Again, Bonus per Employee = Total Bonus Amount / Number of Employees
= 1,83,600 / 20
= 9,180
Thus, the bonus received by each employee is: Rs 9,180.
b) The net profit of a hotel in a fiscal year was Rs 80 lakhs. The board of management of the hotel announced to distribute 25% bonus equally to its 50 employees from the net profit. How much bonus did each employee receive?
2. b)
The net profit of a hotel in a fiscal year was Rs 80 lakhs. The board of management of the hotel announced to distribute 25% bonus equally to its 50 employees from the net profit. How much bonus did each employee receive?
Solution:
Here, the net profit of the hotel = Rs 80,00,000 (80 lakhs), Bonus rate = 25%, and the number of employees = 50.
Now, the total bonus amount is calculated as:
Total Bonus Amount = Bonus Rate × Net Profit
= (25/100) × 80,00,000
= 20,00,000
Again, Bonus per Employee = Total Bonus Amount / Number of Employees
= 20,00,000 / 50
= 40,000
Thus, the bonus received by each employee is: Rs 40,000.
3. a) A garment factory announced 20 % bonus to its 25 workers from the net profit at the end of last fiscal year. If every worker received Rs 18,500, how much was the profit of the factory?
3. a) A garment factory announced 20% bonus to its 25 workers from the net profit at the end of last fiscal year. If every worker received Rs 18,500, how much was the profit of the factory?
Solution:
Here, rate of bonus = 20%
Number of workers = 25
Bonus amount received by each worker = Rs 18,500
Net profit = x (say)
We know that,
Total Bonus Amount = Bonus amount per worker × Number of workers
= 18,500 × 25
= Rs 4,62,500
Also, total bonus amount = Rate of bonus × Net profit
or, 4,62,500 = 20% × x
or, 4,62,500 = 20/100 × x
or, x = 4,62,500 × 100/20
= 4,62,500 × 5
= Rs 23,12,500
Thus, the net profit of the factory is: Rs 23,12,500.
b) A trading corporation distributed 8% of its net profit equally among its 120 employees last year. If each employee received Rs 24,000 bonus, how much net profit did the corporation make in the last year?
3. b) A trading corporation distributed 8% of its net profit equally among its 120 employees last year. If each employee received Rs 24,000 bonus, how much net profit did the corporation make in the last year?
Solution:
Here, rate of bonus = 8%
Number of employees = 120
Bonus amount received by each employee = Rs 24,000
Net profit = Rs. x (say)
We know that,
Total Bonus Amount = Bonus amount per employee × Number of employees
= 24,000 × 120
= Rs 28,80,000
Also, total bonus amount = Rate of bonus × Net profit
or, 28,80,000 = 8% × x
or, 28,80,000 = 8/100 × x
or, x = 28,80,000 × 100/8
= 28,80,000 × 12.5
= Rs 3,60,00,000
Thus, the net profit of the corporation is: Rs 3,60,00,000.
4. a) A business company distributed bonus to its 24 employees from the net profit of Rs 16,48,000. If every employee received Rs 8,240, what was the bonus percent?
Solution:
Here, Net profit = Rs 16,48,000
Bonus amount received by each employee = Rs 8,240
Number of employees = 24
Bonuse Percent = x % (say)
We know that,
Total Bonus Amount = Bonus amount per employee × Number of employees
= 8,240 × 24
= Rs 1,97,760
Also, Total Bonus Amount = Bonus Percent × Net Profit
or, 1,97,760 = (x/100) × 16,48,000
or, x = (1,97,760 × 100) / 16,48,000
= 1,97,76,000 / 16,48,000
= 12%
Hence, the bonus percent is 12%.
b) The board of management of an LP gas company announced to distribute Rs 15,500 bonus equally to its 60 employees from its net profit of Rs 46,50,000 in a fiscal year. What percent of its net profit was distributed by the company for the employee bonus?
b) The board of management of an LP gas company announced to distribute Rs 15,500 bonus equally to its 60 employees from its net profit of Rs 46,50,000 in a fiscal year. What percent of its net profit was distributed by the company for the employee bonus?
Solution:
Here, Net profit = Rs 46,50,000
Bonus amount received by each employee = Rs 15,500
Number of employees = 60
Bonus Percent = x% (say)
We know that,
Total Bonus Amount = Bonus amount per employee × Number of employees
= 15,500 × 60
= Rs 9,30,000
Also, Total Bonus Amount = Bonus Percent × Net Profit
or, 9,30,000 = (x/100) × 46,50,000
or, x = (9,30,000 × 100) / 46,50,000
= 9,30,00,000 / 46,50,000
= 20%
Hence, the bonus percent is 20%.
Creative section
5. a) A garment factory made a net profit of Rs 48,00,000 in the last year. The management of the factory decided to distribute 18 % bonus from the profit to its 25 employees.
(i) Find the bonus amount received by each employee.
(ii) By what percent should the bonus be increased so that each employee can receive Rs 38,400?
(iii) What should be the profit of the company so that it can provide Rs 40,000 to each employee at 20 % bonus?
5. a)
A garment factory made a net profit of Rs 48,00,000 in the last year. The management of the factory decided to distribute 18% bonus from the profit to its 25 employees.
(i)
Solution:
Total Bonus Amount = Bonus Rate × Net Profit
= (18/100) × 48,00,000
= 8,64,000
Bonus per Employee = Total Bonus Amount / Number of Employees
= 8,64,000 / 25
= 34,560
Thus, the bonus amount received by each employee is: Rs 34,560.
(ii)
Solution:
Increase = Desired Bonus - Current Bonus
= 38,400 - 34,560
= 3,840
Percentage Increase = (Increase / Current Bonus) × 100
= (3,840 / 34,560) × 100
= 11.11%
Thus, the bonus should be increased by: 11.11%.
(iii)
Solution:
Total Bonus Amount = Bonus per Employee × Number of Employees
= 40,000 × 25
= 10,00,000
Net Profit = Total Bonus Amount / Bonus Rate
= 10,00,000 / (20/100)
= 10,00,000 × 5
= 50,00,000
Thus, the profit of the company should be: Rs 50,00,000.
b) A hydro power company made a net profit of Rs 2,50,00,000 in the last year. The board of management of the company decided to distribute 10% bonus from the profit to its 125 employees.
(i) Find the bonus amount received by each employee.
(ii) By what percent should the bonus be increased so that each employee can receive Rs 24,000?
(iii) What should be the profit of the company so that it can provide Rs 25,000 to each employee at 8% bonus?
(i)
Solution:
Total Bonus Amount = Bonus Rate × Net Profit
= (10/100) × 2,50,00,000
= 25,00,000
Bonus per Employee = Total Bonus Amount / Number of Employees
= 25,00,000 / 125
= 20,000
Thus, the bonus amount received by each employee is: Rs 20,000.
(ii)
Solution:
Increase = Desired Bonus - Current Bonus
= 24,000 - 20,000
= 4,000
Percentage Increase = (Increase / Current Bonus) × 100
= (4,000 / 20,000) × 100
= 20%
Thus, the bonus should be increased by: 20%.
(iii)
Solution:
Total Bonus Amount = Bonus per Employee × Number of Employees
= 25,000 × 125
= 31,25,000
Net Profit = Total Bonus Amount / Bonus Rate
= 31,25,000 / (8/100)
= 31,25,000 × 12.5
= 3,90,62,500
Thus, the profit of the company should be: Rs 3,90,62,500.
6. a) When a publication house increased its profit from 20% to 25%, the amount of profit increased to Rs 52,08,000. If the company decided to distribute 60% bonus to its 30 employees equally from the increased amount of profit, how much bonus does each employee receive?
b) When cement factory increased its profit from 20% to 25% the amount of profit increased to Rs 87,50,000. If the company decided to distribute 80% bonus to its 50 employees equally from the increased amount of profit, how much bonus will each employee receive?
6. a)
Solution:
Let the total revenue be x.
Old profit = 20% × x = 0.2x
New profit = 25% × x = 0.25x
Increase in Profit = New profit - Old profit = 0.25x - 0.2x = 0.05x
Given Increase in Profit = Rs 52,08,000
0.05x = 52,08,000
x = 52,08,000 / 0.05 = 104,16,00,000
Total Bonus = 60% × Increase in Profit
= (60/100) × 52,08,000
= 31,24,800
Bonus per Employee = Total Bonus / Number of Employees
= 31,24,800 / 30
= 1,04,160
Thus, the bonus received by each employee is: Rs 1,04,160.
6. b)
Solution:
Let the total revenue be x.
Old profit = 20% × x = 0.2x
New profit = 25% × x = 0.25x
Increase in Profit = New profit - Old profit = 0.25x - 0.2x = 0.05x
Given Increase in Profit = Rs 87,50,000
0.05x = 87,50,000
x = 87,50,000 / 0.05 = 175,00,00,000
Total Bonus = 80% × Increase in Profit
= (80/100) × 87,50,000
= 70,00,000
Bonus per Employee = Total Bonus / Number of Employees
= 70,00,000 / 50
= 1,40,000
Thus, the bonus received by each employee is: Rs 1,40,000.
3.3 Dividend
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. A dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding.
Facts to remember
1. Total dividend amount = Rate of dividend × Net profit
2. Dividend rate = Total dividend amount Net profit × 100%
3. Dividend per share = Total dividend amount Total number of shares
4. Dividend for a shareholder with 'n' shares = n × dividend per shares
Example 1: Mrs. Bhatta bought 750 shares out of 20,000 shares from a Business Company. If the company earned a net profit of Rs 90,00,000 and it declared to distribute 10% dividend to its shareholders, how much money did Mrs. Bhatta receive?
Solution:
Here, the net profit of the company = Rs 90,00,000
Now, 10% of Rs 90,00,000 = 10 100 × Rs 90,00,000
= Rs 9,00,000
Again, the profit of 20,000 shares = Rs 9,00,000
The profit of 1 share = Rs 9,00,000 20,000
= Rs 45
The profit of 750 shares = 750 × Rs 45
= Rs 33,750
Hence, she received Rs 33,750 as her dividend.
Example 2: A commercial bank sold 30,000 shares. The bank earned a net profit of Rs 2,50,00,000 in a year and distributed a certain percent of profit as dividend. If a shareholder, who has bought 400 shares, received Rs 50,000 dividend, find what percent of profit was distributed as divided by the bank?
Solution:
Here, the dividend of 400 shares = Rs 50,000
the dividend of 1 share = Rs 50,000 400
= Rs 125
the dividend of 30,000 shares = Rs 30,000 × Rs 125
= Rs 37,50,000
The total dividend = Rs 37,50,000
The net profit = Rs 2,50,00,000
Now, the percent of net profit as dividend = Dividend Net profit × 100%
= Rs 37,50,000 Rs 2,50,00,000 × 100%
= 15%
Hence, 15% of the net profit was distributed as dividend by the bank.
Alternative process:
The dividend of 400 shares = Rs 50,000
The dividend of 1 share = Rs 50,000 400
= Rs 125
Also, the net profit for 30,000 shares = Rs 2,50,00,000
The net profit for 1 share = Rs 2,50,00,000 30,000
= Rs 2500 3
Now, the percent of profit as dividend = Dividend for 1 share Profit for 1 share × 100%
= Rs 125 Rs 2500/3 × 100%
= 15%
Example 3: Harka Magar bought 500 shares out of 50,000 shares sold by a hydropower company. When the company distributed 25% of its net profit, he received Rs 43,850 as his dividend in a year. Calculate the net profit of the company.
Solution:
Here, the profit of 500 shares = Rs 43,850
The profit of 1 share = Rs 43,850 500
= Rs 87.70
The profit of 40,000 shares = 50,000 × Rs 87.70
= Rs 43,85,000
Let, the net profit of the bank be Rs x.
Now, 25% of Rs x = Rs 43,85,000
or, 25x 100 = Rs 43,85,000
x = Rs 1,75,40,000
Hence, the net profit of the company is Rs 1,75,40,000.
EXERCISE 3.3
General section
1. a) Calculate the dividend amount from the table given below.
S.N. Company Net profit Dividend rate Dividend
(i) Finance Rs 25,00,000 50% ……….
(ii) Hydropower Rs 80,00,000 60% ……….
(iii) Commercial bank Rs 1,75,40,000 45% ……….
b) Find the dividend per share from the table given below.
Company Net profit Dividend rate Number of shares Dividend per share
(i) A Rs 60,00,000 40% 2,000 ……….
(ii) B Rs 98,00,000 45% 9,000 ……….
(iii) C Rs 2,45,60,000 70% 30,700 ……….
1. a)
Calculate the dividend amount from the table given below.
S.N. Company Net profit Dividend rate Dividend
(i) Finance Rs 25,00,000 50% ……….
(ii) Hydropower Rs 80,00,000 60% ……….
(iii) Commercial bank Rs 1,75,40,000 45% ……….
Solution:
We know that: Dividend = Dividend Rate × Net Profit
(i) Finance:
Net Profit = Rs 25,00,000, Dividend Rate = 50%
Dividend = (50/100) × 25,00,000 = 12,50,000
Dividend for Finance = Rs 12,50,000.
(ii) Hydropower:
Net Profit = Rs 80,00,000, Dividend Rate = 60%
Dividend = (60/100) × 80,00,000 = 48,00,000
Dividend for Hydropower = Rs 48,00,000.
(iii) Commercial Bank:
Net Profit = Rs 1,75,40,000, Dividend Rate = 45%
Dividend = (45/100) × 1,75,40,000 = 78,93,000
Dividend for Commercial Bank = Rs 78,93,000.
Final Answer:
(i) Finance: Rs 12,50,000
(ii) Hydropower: Rs 48,00,000
(iii) Commercial Bank: Rs 78,93,000
1. b)
Find the dividend per share from the table given below.
Company Net profit Dividend rate Number of shares Dividend per share
(i) A Rs 60,00,000 40% 2,000 ……….
(ii) B Rs 98,00,000 45% 9,000 ……….
(iii) C Rs 2,45,60,000 70% 30,700 ……….
Solution:
We know that: Dividend per Share = Total Dividend / Number of Shares
Where Total Dividend = Dividend Rate × Net Profit
(i) Company A:
Net Profit = Rs 60,00,000, Dividend Rate = 40%, Number of Shares = 2,000
Total Dividend = (40/100) × 60,00,000 = 24,00,000
Dividend per Share = 24,00,000 / 2,000 = 1,200
Dividend per Share for Company A = Rs 1,200.
(ii) Company B:
Net Profit = Rs 98,00,000, Dividend Rate = 45%, Number of Shares = 9,000
Total Dividend = (45/100) × 98,00,000 = 44,10,000
Dividend per Share = 44,10,000 / 9,000 = 4,900
Dividend per Share for Company B = Rs 4,900.
(iii) Company C:
Net Profit = Rs 2,45,60,000, Dividend Rate = 70%, Number of Shares = 30,700
Total Dividend = (70/100) × 2,45,60,000 = 1,71,92,000
Dividend per Share = 1,71,92,000 / 30,700 = 5,600
Dividend per Share for Company C = Rs 5,600.
2. a) A business company makes a net profit of Rs 80,00,000 in a year. The Board of Directors declares 12% cash dividend from the net profit. If the company has sold 1000 shares, answer the following questions.
(i) Find the total cash dividend.
(ii) Find the dividend for each share.
2. a)
A business company makes a net profit of Rs 80,00,000 in a year. The Board of Directors declares 12% cash dividend from the net profit. If the company has sold 1000 shares, answer the following questions.
(i)
Solution:
Here, the net profit = Rs 80,00,000
Dividend rate = 12%
Total Cash Dividend = Dividend Rate × Net Profit
= (12/100) × 80,00,000
= 9,60,000
Thus, the total cash dividend is: Rs 9,60,000.
(ii)
Solution:
Here, the total cash dividend = Rs 9,60,000
Number of shares = 1000
Dividend per Share = Total Cash Dividend / Number of Shares
= 9,60,000 / 1000
= 960
Thus, the dividend for each share is: Rs 960.
b) A development bank made a net profit of Rs 2,40,00,000 in a year and the management announced to distribute 24% cash dividend from the net profit. If the bank has sold 2500 shares, answer the following questions.
(i) Find the total cash dividend.
(ii) Find the dividend for each share.
2. b)
A development bank made a net profit of Rs 2,40,00,000 in a year and the management announced to distribute 24% cash dividend from the net profit. If the bank has sold 2500 shares, answer the following questions.
(i)
Solution:
Here, the net profit = Rs 2,40,00,000
Dividend rate = 24%
Total Cash Dividend = Dividend Rate × Net Profit
= (24/100) × 2,40,00,000
= 57,60,000
Thus, the total cash dividend is: Rs 57,60,000.
(ii)
Solution:
Here, the total cash dividend = Rs 57,60,000
Number of shares = 2500
Dividend per Share = Total Cash Dividend / Number of Shares
= 57,60,000 / 2500
= 2,304
Thus, the dividend for each share is: Rs 2,304.
Creative Section A
3. a) A finance company earned a net profit of Rs 45,20,000 in a year. The company declared to distribute a certain percent of profit as dividend. The total dividend amount was Rs 9,04,000.
(i) What percent of net profit was distributed as dividend?
(ii) If the net profit of the company was Rs. 50,00,000 in the year, how much dividend amount would be distributed at the same rate?
(i)
Solution:
Here, Net Profit = Rs 45,20,000, Total Dividend = Rs 9,04,000
We know that,
Dividend Percent = (Total Dividend / Net Profit) × 100
= (9,04,000 / 45,20,000) × 100
= 20%
Thus, the percent of net profit distributed as dividend is: 20%.
(ii)
Solution:
Here, New Net Profit = Rs 50,00,000, Dividend Rate = 20%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (20/100) × 50,00,000
= 10,00,000
Thus, the total dividend amount that would be distributed is: Rs 10,00,000.
b) A man has 200 shares out of 1000 total shares of a business company. He received Rs 96,000 as dividend in a year which was a certain percent of net profit of Rs 24,00,000.
(i) How much was the total dividend amount distributed?
(ii) What percent of net profit was distributed as dividend?
(i)
Solution:
Here, Dividend received by the man = Rs 96,000
Number of shares owned by the man = 200
Total number of shares = 1000
We know that,
Dividend per Share = Dividend Received by the Man / Number of Shares Owned
= 96,000 / 200
= 480
Next, Total Dividend Amount = Dividend per Share × Total Number of Shares
= 480 × 1000
= 4,80,000
Thus, the total dividend amount distributed is: Rs 4,80,000.
(ii)
Solution:
Here, Total Dividend Distributed = Rs 4,80,000
Net Profit = Rs 24,00,000
We know that,
Dividend Percent = (Total Dividend / Net Profit) × 100
= (4,80,000 / 24,00,000) × 100
= 20%
Thus, the percent of net profit distributed as dividend is: 20%.
4. a) A publication house distributed 21% of dividend to its shareholders from the net profit of a year. If the amount of distributed dividend was Rs 23,52,000, answer the given questions.
(i) Calculate the net profit made by the publication house.
(ii) If the rate of dividend were only 20%, how much would be the total dividend distributed?
(i)
Solution:
Here, Dividend Rate = 21%, Total Dividend Distributed = Rs 23,52,000
We know that,
Net Profit = Total Dividend / Dividend Rate
= 23,52,000 / (21/100)
= 23,52,000 × (100/21)
= 1,12,00,000
Thus, the net profit made by the publication house is: Rs 1,12,00,000.
(ii)
Solution:
Here, Net Profit = Rs 1,12,00,000, New Dividend Rate = 20%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (20/100) × 1,12,00,000
= 22,40,000
Thus, the total dividend distributed at 20% would be: Rs 22,40,000.
b) A small hydropower company distributed the total amount of dividend of Rs 14,58,000 to its shareholders which was 30% of the net profit earned by the company.
(i) Find the net profit earned by the company.
(ii) If the rate of dividend were only 25%, how much would be the total dividend distributed?
(i)
Solution:
Here, Dividend Rate = 30%, Total Dividend Distributed = Rs 14,58,000
We know that,
Net Profit = Total Dividend / Dividend Rate
= 14,58,000 / (30/100)
= 14,58,000 × (100/30)
= 48,60,000
Thus, the net profit earned by the company is: Rs 48,60,000.
(ii)
Solution:
Here, Net Profit = Rs 48,60,000, New Dividend Rate = 25%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (25/100) × 48,60,000
= 12,15,000
Thus, the total dividend distributed at 25% would be: Rs 12,15,000.
Creative Section B
5. a) Mrs. Rai bought 250 shares out of 10,000 shares from a finance company. The company earned a net profit of Rs 85,20,000 and declared 17% dividend to its shareholders. Calculate the amount of dividend received by Mrs. Rai.
b) A Business Company sold 2,500 shares at Rs 1,200 per share. Bishwant bought 450 shares. If the company earned a net profit of Rs 39,00,000 in a year and it announced to distribute 18% dividend from the net profit to its shareholders, find the amount of dividend received by Bishwant.
5. a)
Solution:
Here, Net Profit = Rs 85,20,000, Dividend Rate = 17%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (17/100) × 85,20,000
= 14,48,400
Now, Dividend per Share = Total Dividend / Total Number of Shares
= 14,48,400 / 10,000
= 144.84
Next, Dividend Received by Mrs. Rai = Dividend per Share × Number of Shares Owned
= 144.84 × 250
= 36,210
Thus, the amount of dividend received by Mrs. Rai is: Rs 36,210.
5. b)
Solution:
Here, Net Profit = Rs 39,00,000, Dividend Rate = 18%
Total Dividend = Dividend Rate × Net Profit
= (18/100) × 39,00,000
= 7,02,000
We know that,
Dividend per Share = Total Dividend / Total Number of Shares
= 7,02,000 / 2,500
= 280.80
Next, Dividend Received by Bishwant = Dividend per Share × Number of Shares Owned
= 280.80 × 450
= 1,26,360
Thus, the amount of dividend received by Bishwant is: Rs 1,26,360.
6. a) A Cable Car Company sold 3,000 shares to the local people. The company earned a net profit of Rs 1,20,00,000 in a year and distributed a certain percent of profit as dividend. If Anamol, a shareholder who has bought 125 shares received Rs 1,10,000 dividend, answer the following questions.
(i) What percent of profit was distributed as dividend?
(ii) How much cash dividend would Anamol get at the same percent of net profit if he had 200 shares and the company made a net profit of Rs 1,50,00,000?
6. a)
(i)
Solution:
Here, Dividend received by Anamol = Rs 1,10,000
Number of shares owned by Anamol = 125
We know that,
Dividend per Share = Dividend Received by Anamol / Number of Shares Owned
= 1,10,000 / 125
= 880
Next, Total Dividend = Dividend per Share × Total Number of Shares
= 880 × 3,000
= 26,40,000
Net Profit = Rs 1,20,00,000
Then, Dividend Percent = (Total Dividend / Net Profit) × 100
= (26,40,000 / 1,20,00,000) × 100
= 22%
Thus, the percent of profit distributed as dividend is: 22%.
(ii)
Solution:
Here, New Net Profit = Rs 1,50,00,000, Dividend Rate = 22%
Total Dividend = Dividend Rate × Net Profit
= (22/100) × 1,50,00,000
= 33,00,000
We know that,
Dividend per Share = Total Dividend / Total Number of Shares
= 33,00,000 / 3,000
= 1,100
Number of shares owned by Anamol = 200
Next, Dividend Received by Anamol = Dividend per Share × Number of Shares Owned
= 1,100 × 200
= 2,20,000
Thus, the cash dividend Anamol would receive is: Rs 2,20,000.
b) Suntali bought 200 shares out of 5,000 shares sold by a hydropower company to the local people. The company earned a net profit of Rs 75,00,000 in a year and it declared to distribute a certain percent dividend to its shareholders. If she received Rs 81,000, answer the following questions.
(i) What percent of the net profit was distributed as dividend?
(ii) How much cash dividend would Ravi get if he had 250 shares of the same company, the company made a net profit of Rs 80,00,000 and distributed the dividend at the same percent of profit?
(i)
Solution:
Here, Dividend received by Suntali = Rs 81,000
Number of shares owned by Suntali = 200
We know that,
Dividend per Share = Dividend Received by Suntali / Number of Shares Owned
= 81,000 / 200
= 405
Next, Total Dividend = Dividend per Share × Total Number of Shares
= 405 × 5,000
= 20,25,000
Net Profit = Rs 75,00,000
Next, Dividend Percent = (Total Dividend / Net Profit) × 100
= (20,25,000 / 75,00,000) × 100
= 27%
Thus, the percent of profit distributed as dividend is: 27%.
(ii)
Solution:
Here, New Net Profit = Rs 80,00,000, Dividend Rate = 27%
Total Dividend = Dividend Rate × Net Profit
= (27/100) × 80,00,000
= 21,60,000
We know that,
Dividend per Share = Total Dividend / Total Number of Shares
= 21,60,000 / 5,000
= 432
Number of shares owned by Ravi = 250
Next, Dividend Received by Ravi = Dividend per Share × Number of Shares Owned
= 432 × 250
= 1,08,000
Thus, the cash dividend Ravi would receive is: Rs 1,08,000.
7. a) Mr. Dhurmus bought 500 shares out of 10,000 shares sold by a commercial bank. The bank earned some profit and it distributed 14% of the net profit as dividend in a year. If Dhurmus received Rs 1,03,600 in the year, answer the following questions:
(i) What was the net profit of the bank?
(ii) How much cash dividend would Pemba get if he had 350 shares of the same bank and the bank distributed 15% of net profit as dividend?
(i)
Solution:
Here, Dividend received by Dhurmus = Rs 1,03,600
Number of shares owned by Dhurmus = 500
We know that,
Dividend per Share = Dividend Received by Dhurmus / Number of Shares Owned
= 1,03,600 / 500
= 207.20
Next, Total Dividend = Dividend per Share × Total Number of Shares
= 207.20 × 10,000
= 20,72,000
Dividend Rate = 14%
Next, Net Profit = Total Dividend / Dividend Rate
= 20,72,000 / (14/100)
= 20,72,000 × (100/14)
= 1,48,00,000
Thus, the net profit of the bank is: Rs 1,48,00,000.
(ii)
Solution:
Here, Net Profit = Rs 1,48,00,000, Dividend Rate = 15%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (15/100) × 1,48,00,000
= 22,20,000
Next, Dividend per Share = Total Dividend / Total Number of Shares
= 22,20,000 / 10,000
= 222
Number of shares owned by Pemba = 350
Next, Dividend Received by Pemba = Dividend per Share × Number of Shares Owned
= 222 × 350
= 77,700
Thus, the cash dividend Pemba would receive is: Rs 77,700.
b) A Life Insurance Company earned some profit and announced to distribute 40% dividend from its net profit to its shareholders. If a shareholder who bought 300 shares out of 12,000 shares sold by the company received Rs 1,25,400, Answer the following questions.
(i) What was the net profit of the company?
(ii) If Junu had 400 shares of the same company and the company distributed only 30% of its net profit as dividend, how much cash dividend would she get?
(i)
Solution:
Here, Dividend received by the shareholder = Rs 1,25,400
Number of shares owned by the shareholder = 300
We know that,
Dividend per Share = Dividend Received by the Shareholder / Number of Shares Owned
= 1,25,400 / 300
= 418
Next, Total Dividend = Dividend per Share × Total Number of Shares
= 418 × 12,000
= 50,16,000
Dividend Rate = 40%
Then, Net Profit = Total Dividend / Dividend Rate
= 50,16,000 / (40/100)
= 50,16,000 × (100/40)
= 1,25,40,000
Thus, the net profit of the company is: Rs 1,25,40,000.
(ii)
Solution:
Here, Net Profit = Rs 1,25,40,000, Dividend Rate = 30%
We know that,
Total Dividend = Dividend Rate × Net Profit
= (30/100) × 1,25,40,000
= 37,62,000
Next, Dividend per Share = Total Dividend / Total Number of Shares
= 37,62,000 / 12,000
= 313.50
Number of shares owned by Junu = 400
Next, Dividend Received by Junu = Dividend per Share × Number of Shares Owned
= 313.50 × 400
= 1,25,400
Thus, the cash dividend Junu would receive is: Rs 1,25,400.
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