acted. The one for whom the business is transacted is called the principal. 213. A guaranty is an additional charge made by the agent for assuming the risk on credit sales, or for the quantity and quality of goods. 214. Merchandise sent by a principal (shipper or consignor) is called a shipment. 215. Merchandise received by an agent (consignee) is called a consignment. 216. Gross proceeds is the total amount received by the agent for the goods. 217. Net proceeds is the amount remaining after all expenses have been deducted. 218. The prime cost is the actual cost of the merchandise. 219. The gross cost is the total cost, including expenses, etc. 220. An account sales or account purchase is a statement itemizing the entire transaction. 221. Apply the principles of percentage. Gross proceeds or prime cost = base. Rate of commission Commission Gross cost or gross proceeds Net proceeds Formulas: = rate. = percentage. = amount. Gross proceeds or prime cost x rate of commission = com 17. An agent's commissions were $2500 in one month. If he transacted business on a 5% commission, how much business did he handle that month? 18. An agent sold 40000 lb. of wheat. After deducting his commission of 2%, he sent his principal $490. For how much per bushel was the wheat sold? 19. A manufacturer remits his agent $3150 with which to buy cotton. How much does the agent invest if his commission is 5%? [Amount ÷ (1 + rate) = investment.] 20. A commission merchant remits $8000 to invest in wheat, after all expenses are paid. Charges were as follows: guaranty, 2%; drayage, $10; freight, $100; commission, 21%. Find the commission, and the amount actually invested in wheat. 21. A salesman for a wholesale house works on a commission of 5%. On sales in excess of $100000 per year he gets an added 1%. From the following report of his sales, figure his total commissions, and his net income above expenses. 22. A salesman is guaranteed a salary of $2000 per year, with the understanding that he is to receive not less than 4% of his total sales. What is his income in cash in the following years? What per cent of his sales for 1910 did he receive as salary? What per cent of his sales for the three years is his income for that time? 1. Give the fractional equivalent for the following percentages: 5%, 6%, 81%, 10%, 111%, 121%, 20%, 25%, 331%, 50%, 621%, 75%. 2. If B 200 and R=.05, find P in the equation BR = P. = 3. If B=600 and P= 200, find R in the equation BR=P. 4. A man bought a drug store for $ 6000; he gave a mortgage for 60% of it. What was the amount of the mortgage? 5. A merchant failing in business was able to pay 85% of his debts. How much did he pay A, if he owed him $ 4000? 6. A man's income is $1500 per year. His expenses are as follows: rent, $ 300; household, $ 500; heat, $50; light, $20; clothing, $200; miscellaneous, $100. What per cent of his salary does he save? 7. A town lot is valued at $ 2000, caused by a 25% rise in the value of real estate. If the owner valued it before the rise at 20% more than he paid for it, what did it cost him? A house is sold for $10000, at a loss of 20% of the cost. Had it been sold for $15000, what would have been the per cent of gain? 9. A man bought a farm for $ 6000. Disregarding interest, he can pay for the property in 12 years by saving 20% of his income. What is his income? 10. A merchant's cost of doing business is 33% of his gross sales; his profits are 20% of his gross sales. If the gross sales for the year 1912 are $50000, what per cent of his profits is his cost of doing business? GROUP 2 In applying the principles of percentage to the solution of problems, as in Gain and Loss, Commission, etc., pick out B, R, and P before attempting to solve. |