Commission

• Economie
• Tertiary Education

Use the anagram given to find a meaningful word

sniosmicom

CLUE

This word is a kind of pay based on sales

Lesson 1.6: Commission

Pages 112-114

You will be able to 

• Describe commission,commission rate, straight commission.
• Compute straight commission pay 
• Evaluate the difference between being paid salary and being paid on commission

Facts

 Commission:This is an amount of money that you are paid

for selling a product or service

Commission Rate:This is either a specified amount of money paid for each sale or a percent of the total value of your sales.

Straight commission: The commission
 is the only pay you receive,on your work.

Commission is payment based on value of _________.

A specified amount of money paid for
each sale or a percent of the total value of your sales

1. Commission
2. Commission Rate
3. Straight Commission
4. Total Pay

What is a straight commission ?

Is there a difference between commission and straight commission?

Straight Commission

Straight commission=Total Sales X Commission rate

1. $9,400 × 8% commission rate.Find the straight commission.

1. 680
2. 790
3. 560
4. 752

Glen makes sales worth $143,400 and his rate of commission is 5.5%.Find the straight commission.Show working.

Minimum Salary and Total sales

Minimum Salary: Instead of working only on commission, you

might be guaranteed a minimum weekly or monthly salary.

 y. In some
cases, the commission you earn during a week or month is compared
with your minimum salary and your gross pay is the higher of the two amounts. In other cases, you might be paid a base salary and earn commission in addition to this base salary

Formula for total pay

Total Pay=Minimum Salary+(Commission rate X Sales)

Isaiah Copeland sells tennis equipment. He is guaranteed a minimum salary of $1,500 per month plus 5.75% of his total sales. What are Isaiah’s total sales for a month in which his gross pay was $2,075?

Give the formula for calculating total pay

Why do you think a minimum salary plus a commission is paid for?

1. To show the business competitors that they are paying well
2. To make them lazy
3. To encourage the employees to stay at the job
4. To give extra income

Give the important terms or formula of the lesson.