Frances is a travel agent.Her budget for 20X4 assumed that she would sell 1450 holidays at an average price of £1500, earning 10% commission on each holiday sold.Comparing actual with budget figures after the year end, Frances finds that she sold only 1375 holidays, but at an average price of £1521.In order to negotiate some special deals, she had to take lower commission in some cases.Her average commission for the year was 9.7%. What was the difference between Frances' budget and actual commission revenue for the 20X4 financial year (to the nearest £)?
Actual commission revenue was:

Question

Quizplus · Accepted Answer

Frances' budgeted commission revenue was 1450 holidays * £1500 * 10% = £217,500. Her actual commission revenue was 1375 holidays * £1521 * 9.7% = £202,863.75. The difference is £217,500 - £202,863.75 = £14,636.25, which rounds to £14,637 worse than budget.

Frances Is a Travel Agent