Mathematics High School

Teboho has to sell a certain number of cars each month. For every car he sells over and above this number he earns 17% commission on the price of the car before VAT is added. He sold three cars on which he earned commission. The VAT included prices were R271 800,00; R316 800,00 and R99 300,00. Calculate:

1.1 The prices of the cars before VAT was added

1.2 The commission he earned on the cars.

Answers

Answer 1

The commission earned are R41123.17, R47931.67 and R15024.09

The prices of the cars before VAT was added

The VAT included prices are given as:

R271 800,00; R316 800,00 and R99 300,00.

The VAT rate is 12.36%.

So, the price before VAT is calculated as:

VAT included = Price without VAT * (1 + 12.36%)

This gives

VAT included = Price without VAT * 1.1236

So, we have:

Price without VAT = VAT included/1.1236

For the three cars, we have:

Price without VAT = R271 800.00/1.1236 = R241901

Price without VAT = R316800.00 /1.1236 = R281951

Price without VAT = R99300.00/1.1236 = R88377

Hence, the prices of the cars before VAT was added are R241901, R281951 and R88377

The commission he earned on the cars.

This is calculated as:

Commission = Price * 17%

So, we have:

Commission = R241901 * 17% = R41123.17

Commission = R281951 * 17% = R47931.67

Commission = R88377 * 17% = R15024.09

Hence, the commission earned are R41123.17, R47931.67 and R15024.09

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