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    Commission

    Uploaded by

    angelamainano
    The document defines and provides examples for calculating commissions. It explains that a commission is a fee paid based on a percentage of a sales price. The percentage used is called the commission rate. Several examples are provided to demonstrate how to calculate commissions by multiplying the commission rate by total sales. Formulas are given for calculating total pay when a commission plus salary are provided. Additional examples show how to find the commission rate or selling price when some values are unknown.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Commission

    Uploaded by

    angelamainano
    20 views14 pages
    The document defines and provides examples for calculating commissions. It explains that a commission is a fee paid based on a percentage of a sales price. The percentage used is called the commission rate. Several examples are provided to demonstrate how to calculate commissions by multiplying the commission rate by total sales. Formulas are given for calculating total pay when a commission plus salary are provided. Additional examples show how to find the commission rate or selling price when some values are unknown.

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    The document defines and provides examples for calculating commissions. It explains that a commission is a fee paid based on a percentage of a sales price. The percentage used is called the commission rate. Several examples are provided to demonstrate how to calculate commissions by multiplying the commission rate by total sales. Formulas are given for calculating total pay when a commission plus salary are provided. Additional examples show how to find the commission rate or selling price when some values are unknown.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views14 pages

    Commission

    Uploaded by

    angelamainano
    The document defines and provides examples for calculating commissions. It explains that a commission is a fee paid based on a percentage of a sales price. The percentage used is called the commission rate. Several examples are provided to demonstrate how to calculate commissions by multiplying the commission rate by total sales. Formulas are given for calculating total pay when a commission plus salary are provided. Additional examples show how to find the commission rate or selling price when some values are unknown.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 14

    Commission

    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
    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
    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
    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
    $18.45  .05 x 369 Make sure you
    convert to a
    decimal!
    Example 2
    Suppose the commission rate is 8%. Find the
    commission on a $675 refrigerator.

    commission  commission rate  total sales

    8%  675
    $54  .08 x 675 Make sure you
    convert to a
    decimal!
    Try This!
    commission rate: 5% Commission x Sales
    total sales: $200 5% x 200
    commission: __________ .05 x 200 = 10

    commission rate: 6% Commission x Sales


    total sales: $1,500 6% x 1500
    commission: __________ .06 x 1500 = 90
    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


    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
    total pay, t = 510
    Try This!
    Commission rate: 3% Commission x Sales
    Total sales: $1800 3% x 1800
    Salary: $250 .03 x 1800 = 54
    Total Pay: __________ 54 + 250 = $304
    Commission rate: 2% Commission x Sales
    Total sales: $25,000 2% x 25000
    Salary: $400 .02 x 25000 = 500
    Total Pay: __________ 500 + 400 = $900
    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? Remember!! is
    Let r  commission rate. of
    69 .06
     1150 69.00
    1150
    Make sure you
    Commission Rate = 6% convert to a
    percent!
    Try This!
    Total sales: $5000 Commission / Sales
    Commission Rate:______ 250 / 5000
    Commission: $250 25 / 500 = 1/20 = 5%

    Total sales: $2800 Commission / Sales


    Commission Rate:______ 700 / 2800
    Commission: $700 7 / 28 = ¼ = 25%
    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? % is


    Remember!! =
    100 of
    3 18
    =
    100 x 3x = 1800
    x = 600 The selling price
    is $600
    Try This!

    Total sales:________
    Commission Rate: 4% 4 50 4x = 5000
    =
    100 x x = 1250
    Commission: $50

    Total sales:________
    Commission Rate: 5% 5 400 5x = 40000
    100 = x x = 8000
    Commission: $400

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