Types Of Commission

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Types Of Commission

  1. 1. Commission We will look at 3 different forms of commission 1. Straight Commission 2. Salary plus Commission 3. Graduated Commission
  2. 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. 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. 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. 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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