Total number of person to be added is 20 customers.
20 subscribers have to pay each 5,000 for 2 months.
Auction percentage is fixed at 25% for the first ten months and gradually it will keep decreasing. that is 25% on 1,00,000 is 25,000.
Foreman commission is 5% on 1,00,000 which is 5,000. First two month this 5,000 commission goes to the company, which is collected 5,000 from our customers Rs.250 (250 * 20 = 5000).
Each person has to pay 5,000 every month. If the person pays less than that amount, then the remaining amount is called dividend.
The ceiling amount for 25% starts from Rs 50,000 to Rs.2,00,000.
1,00,000 * 25/100 = 25,000 (Auction amount).
1,00,000 * 5/100 = 5,000 (Foreman commission).
1,00,000 – 25000 = 75,000.
75,000 + 5,000 = 80,000.
80,000 / 20 = 4000 (The amount to be paid by each subscriber when the auction bid is 25%).
5,000 – 4000 = 1,000 (Dividend amount).
The ceiling amount for 30% start from Rs. 3,00,000 to Rs .25,00,000
3,00,000 * 30/100 = 90,000 (Auction amount).
3,00,000 * 5/100 = 15,000 (Foreman commission).
3,00,000 – 90,000 = 2,10,000.
2,10,000 + 15,000 = 2,25,000.
2,25,000 / 20 = 11250 (The amount to be paid by each subscriber when the auction bid is 30%).
15,000 – 11250 = 3,750 (Dividend amount).
To know more about our service related details.
The prize amount will be given to the prized subscriber within a period of 30 days from the auction date.
