Lesson 1.7: Graduated Commission

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Economie

This lesson contains 20 slides, with interactive quizzes, text slides and 1 video.

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Slide 1 - Slide

Lesson 1.7: Graduated Commission
Pages 115-117

Slide 2 - Slide

Objectives
Describe graduated commission.
Compute total graduated commission.
Evaluate the calculation of total sales for a week.

Slide 3 - Slide

Question
What is a commission?Do you think that your commission rate will increase along with your sales?

Slide 4 - Slide

Slide 5 - Video

Definitions
A graduated Commission offers a different rate of commission for each of several levels of sales.

Slide 6 - Slide

What is graduated commission?
A
Rate of commission remains same
B
Commission rate decreases
C
Different rate of commission for each of several levels of sales
D
Commission rate based on income

Slide 7 - Quiz

How does the graduated commission help the employees to earn?

Slide 8 - Mind map

Create a relationship between commission rate and sales.

Slide 9 - Open question

Formula for graduated commission
Total Graduated Commission= Sum of Commission for all levels of sales

Slide 10 - Slide

Example
Irene Gomaz sells appliances at
Twin City Sales. She receives a graduated commission as shown.  Irene’s sales for the past month totaled $9,840. What was her  commission for the month?
                           Sales    X   Commission rate
First $1000: $1000      X         4%         =$40.00
Next $2000:$2000     X     6%              = $120.00
Over $3000:($9840 -$3000)X 8%    = 
                           $6840 X 8%  )                    =$547.20
            Total Graduated Commission = $707.20                     

Slide 11 - Slide

Sal Espinosa makes a 10% commission on the first $5,000 of sales
and 15% on any sales over $5,000. Find his total graduated
commission on $15,000 in sales.

Slide 12 - Mind map

Points of importance when calculating the graduated commission.
A
Record the commission equally
B
Record change in commission rate according to change in sales
C
Record the sales
D
Record the decrease in commission

Slide 13 - Quiz

Example
Mike Turino is paid weekly and earns a 4% straight commission on sales of $5,000 or less and 5% on sales in excess of $5,000. One week Mike’s total graduated commission was $362. What were his total sales for that week?

Slide 14 - Slide

Solution
Step 1: Let s = His total sales for the week.
Step 2: Write an equation for his total graduated commision.
Total Graduated
Commission = Commission on  first $5,000 +  Commission on sales  over $5,000
Step 3: Solve for s.
 $362 = (0.04 × $5,000) + [0.05(s – $5,000)]
 $362 = $200 + 0.05s – $250
 $362 = 0.05s – $50
 $412 = 0.05s
 $412/ 0.05s =0.05 /0.05s
$8,240 = S   Mike’s total sales for the week must have been $8,240 to have a total graduated
commission of $362







Slide 15 - Slide

Dabney Washington is paid a weekly commission of 3.5% on sales of
$7,500 or less and 5.5% on sales in excess of $7,500. Last week
Dabney’s commission was $822.40. What was the total of her sales for
the week?

Slide 16 - Open question

What is the difference between a graduated commission and commission?

Slide 17 - Open question

Adnan Hassan earned 5% commission as a sales trainee. After
promotion to a sales associate, he earned 8% commission. His year-end
report showed $673,874 in total sales and $45,006.52 in commission.
What did his sales total as (a) a sales trainee and (b) a sales associate?

Slide 18 - Mind map

Give the important terms and concepts of the lesson

Slide 19 - Mind map

Thank you

Slide 20 - Slide