This document discusses different types of commission structures used to compensate sales agents. It provides examples to illustrate how to calculate commissions for straight commission, graduated commission, salary plus commission, and commission on installment basis. Examples show how to determine an agent's earnings based on their sales amounts, commission rates, and other factors like minimum salaries, collection amounts, and installment payments.

3. ADVANTAGE OF
COMMISSION

8. 1. You have a minimum salary of Php30,000 a month
and a commission rate of 3%.
How much will you get if you sell items worth
Php110,000?
2. Ruby is paid with a 4% commission and she
was able to sell a total amount of Php180,000.
How much is her commission for this?

9. 3. For every item that John sells, he will get a commission
of 10%. He sold an item worth Php223,000. How much
did he earn?
4. Lady Anne works in a commission only company. She
sold items worth Php13,000 and she will get a 6%
commission rate. How much did she earn?

10. TYPES OF
COMMISSION

11. STRAIG
HT
COMMIS
SION
is a form of
compensation but with
no fixed salary of the
agent. It means that is
only the commission
of sales that agent will
get from the company.

12. STRAIG
HT
COMMIS
SION
Example 1
Nathaniel works in company with
a commission only basis. His
boss gave him 3.2% commission
on his total monthly sales
without base salary. Fortunately,
Nathaniel made a sale of Php
180, 000 for the month of July.
How much will be his
commission?

13. Example 2
Salve started a company with a
commission only basis of 2.8%.
One of her employees made a sale
of Php132,000 worth of furniture
last March. Unfortunately, the
costumer who bought a dining
table set worth Php28,300
returned it because of some
defects. How much commission
will Salve give to her employee
who made that sale?
STRAIG
HT
COMMIS
SION

14. GRADUA
TED
COMMIS
SION
is a type of commission
that the company gives to
their sales agent not in
once but in gradual. The
commission will increase if
the sale of an agent also
increases. This will
encourage the agent to sell
more so that they can earn
a big commission.

15. Example 1
Rolando is an agent with a
commission of 3% on his
first Php150,000 of sales
during the month and
2.5% commission on sales
above Php150,000. He
happened to have a sale of
Php187,000. How much
will he earn?
GRADUA
TED
COMMIS
SION

16. Example 2
Loretta has a monthly
commission of 2.6% on all
her total sales. The
company gives her 1%
commission bonus if she
reached a minimum of
Php35,000, another 1% if
she also exceeds the
minimum of Php75,000.
How much will be her total
earnings if she happened to
reach sales of Php98,000?
GRADUA
TED
COMMIS
SION

17. SALARY
PLUS
COMMISS
ION
is when an agent gets
a salary on top of the
commission he/she
will get for every sale
that he/she can
make.

18. Example
Mr. Chan is working in a company
with a minimum salary wage of
Php12,000 monthly. On top of his
salary, he is expected to sell
appliances worth Php6,000. He
can get an additional 3%
commission when he exceeds his
expected sales. He fortunately
made a sale worth Php13,700.
How much will be his gross pay?
SALARY
PLUS
COMMIS
SION

19. is a commission not
based on sales, but it is
a commission based on
the collection or what
we call payments by
buyers. Installment
means that the buyers
didn’t pay all at once.
Commissi
on on
Installmen
t Basis

20. Commissi
on on
Installme
nt Basis
Example
Mr. Watson works in a
cellphone shop that offers him
3% commission on every sale
he can make. He made a sale
worth Php80,000 that can be
paid in an installment of
Php10,000 per month for 8
months. How much will be his
monthly commission? How
much is the total commission
he can get?

21. DOWN PAYMENT,
GROSS BALANCE,
CURRENT
INCREASED
BALANCE, AND
SOLVING INTERESTS
AND COMMISSIONS