Commission

What is a commission? What is a commission?

A A commissioncommission is a fee paid to a person who is a fee paid to a person who makes a sale. makes a sale. The commission is usually a percent of the The commission is usually a percent of the selling price. The percent is called the selling price. The percent is called the commission ratecommission rate..

commission commission commission rate commission rate total salestotal 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 commission ratecommission rate total salestotal sales

55%%

369369

.05 .05 x 369x 369$18.45 $18.45 Make sure you convert to a

decimal!

Example 2

Suppose the commission rate is 8%. Find the commission on a $675 refrigerator.

commission commission commission ratecommission rate total salestotal sales

88%%

675675

.08 .08 x 675x 675$54 $54 Make sure you convert to a

decimal!

Try This!

commission rate: 5%total sales: $200commission: __________

Commission x Sales5% x 200.05 x 200 = 10

commission rate: 6%total sales: $1,500commission: __________

Commission x Sales6% x 1500.06 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 total pay commission + commission + salarysalary

Example 3Josh 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= 510total pay, t

Try This!

Commission rate: 3%Total sales: $1800Salary: $250Total Pay: __________

Commission x Sales3% x 1800.03 x 1800 = 5454 + 250 = $304

Commission x Sales2% x 25000.02 x 25000 = 500500 + 400 = $900

Commission rate: 2%Total sales: $25,000Salary: $400Total Pay: __________

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

Remember!!

69 1150 69.01150 0

.06

Commission Rate = 6%Make sure you

convert to a percent!

Try This!

Total sales: $5000Commission Rate:______Commission: $250

Commission / Sales250 / 500025 / 500 = 1/20 = 5%

Total sales: $2800Commission Rate:______Commission: $700

Commission / Sales700 / 28007 / 28 = ¼ = 25%

Finding the Selling PriceThe 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 = 3x = 1800

x = 600 The selling price is $600

Try This!

Total sales:________Commission Rate: 4%Commission: $50

Total sales:________Commission Rate: 5%Commission: $400

50 x

4 100 = 4x = 5000

x = 1250

400 x

5 100 = 5x = 40000

x = 8000