A commission is a fee paid to a salesperson, usually a percentage of the total sales. The commission rate is multiplied by the total sales to calculate the commission amount. Some salespeople also receive a base salary in addition to their commission. To calculate total pay, you add the commission and salary amounts. You can also work backwards to find the commission rate, total sales, or selling price given any two of the variables.

1. Commission

2. What is a commission? A commission is a fee paid to a person who makes a sale. The commission is usually a percent of the selling price. The percent is called the commission rate . commission  commission rate  total sales

3. Example 1 Carmen Pena works in an appliance store. She is paid a 5% commission rate on all appliances that she sells. What is her commission on the sale of a television set that costs $369? commission  commission rate  total sales 5%  369 .05 x 369 $18.45  Make sure you convert to a decimal!

4. Example 2 Suppose the commission rate is 8%. Find the commission on a $675 refrigerator. commission  commission rate  total sales 8%  675 .08 x 675 $54  Make sure you convert to a decimal!

5. Try This! commission rate: 5% total sales: $200 commission: __________ Commission x Sales 5% x 200 .05 x 200 = 10 commission rate: 6% total sales: $1,500 commission: __________ Commission x Sales 6% x 1500 .06 x 1500 = 90

6. Other salespeople are paid a commission plus a regular salary. Their total pay is a percent of the sales they make plus a salary. total pay  commission + salary

7. Example 3 Josh earns a weekly salary of $300 and a 6% commission on his sales. Last week his sales totaled $3,500. What was his total pay? Think: total pay, t  commission rate  total sales  salary 6% 3500 300   Make sure you convert to a decimal! = .06  3500 + 300 = 210 + 300 = 510 total pay, t

8. Try This! Commission rate: 3% Total sales: $1800 Salary: $250 Total Pay: __________ Commission x Sales 3% x 1800 .03 x 1800 = 54 54 + 250 = $304 Commission x Sales 2% x 25000 .02 x 25000 = 500 500 + 400 = $900 Commission rate: 2% Total sales: $25,000 Salary: $400 Total Pay: __________

9. Finding the Commission Rate The commission on the sale of a $1,150 video camera is $69. What was the commission rate? What percent of 1150 is 69? Let r  commission rate. is of 69 1150  Commission Rate = 6% Make sure you convert to a percent! Remember!!

10. Try This! Total sales: $5000 Commission Rate:______ Commission: $250 Commission / Sales 250 / 5000 25 / 500 = 1/20 = 5% Total sales: $2800 Commission Rate:______ Commission: $700 Commission / Sales 700 / 2800 7 / 28 = ¼ = 25%

11. Finding the Selling Price The commission rate is 3% and the commission on the software sale is $18. What is the selling price? 3 % of what number is 18? Remember!! is of % 100 = 18 x 3 100 = 3 x = 1800 x = 600 The selling price is $600

12. Try This! Total sales:________ Commission Rate: 4% Commission: $50 Total sales:________ Commission Rate: 5% Commission: $400 4x = 5000 x = 1250 5x = 40000 x = 8000 50 x 4 100 = 400 x 5 100 =