The document discusses three forms of commission compensation: straight commission, salary plus commission, and graduated commission. Straight commission pays an employee a percentage of total sales. Salary plus commission provides a base salary plus additional payment based on sales above a threshold. Graduated commission uses different commission percentages that increase as sales volumes increase. Examples are provided to illustrate how to calculate earnings under each compensation structure.

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