Question

A commission merchant specializing in food products sold consignment of products for a farm. The sales price was $18,450 with commission rate of 12% for farm products. For this consignment, there was $890 freight that the merchant had to pay. What were the net proceeds due to the farm?

Answer 1

Answer:

The net proceeds due to the farm are $15346.

Step-by-step explanation:

Given:

The sales price was $18,450 with commission rate of 12% for farm products. For this consignment, there was $890 freight that the merchant had to pay.

Now, to find the net proceeds due to the farm.

So, we deduct the commission rate of 12% for farm products:

$18,450 - 12% of $18,450.

$=18450-\frac{12}{100} \times 18450$

$=18450-\frac{221400}{100}$

$=18450-2214=\ 16236$

And, then we deduct the freight $890 that the merchant had to pay:

$16236-890$

$=\ 15346.$

Therefore, the net proceeds due to the farm are $15346.