1.
Commission
We will look at 3 different
forms of commission
1. Straight Commission
2. Salary plus Commission
3. Graduated Commission
2.
Straight Commission
Straight commission is when a
person is paid a % of sales only.
Example 1
Harry receives 30% commission on the appliances he sells.
If he sells a TV for $350.00, a Refrigerator for $400.00
and a heater for $440.00 how much does Harry make in
commission?
(350 + 400 + 440) = $1190
1190 x .30 = $357
3.
Straight Commission
Juliet receives 25% commission on the
appliances she sells. If she sells a
computer for $450.00 , a printer for
$200.00 and a cellphone for$ 508.00,
how much does juliet make in
commission?(diesel)
450+200+508=$1158
1158(.25)=$289.50
4.
Salary plus Commission
This is exactly as it sounds, a person
gets paid a salary and a % of sales.
example 2
Harry decides to work for another company that will pay him
$350 per week and 6% of any sales above $3000. If he sold
goods worth $5688.00 what is his gross pay?
5688 - 3000 = $2688
2688 x .06 = $161.28 Commission
161.28 + 350 = $511.28 Gross Pay
5.
Graduated Commission
This is when the % changes based on
how much someone sells.
Example 3
Steve works for a company that pays him 1% on the first
$5000 sold, 2% on the next $15000 sold and 3% on all sales
over $20 000. What is his gross pay if he sells $25 000?
5000 x .01 = $50
25 000 - 5000 = $20000
15000 x .02 = $300
20000 - 15000 = $5000
5000 x .03 = $150
50 + 300 + 150 = $500
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