L1 - 2.4 Commission

Calculating a commission involves using percents.

A percent is a value divided by 100.

For example,

·  80% is equal to 80/100 or 80 ÷100 or 0.80

·  45% are equal to 45/100 or 45 ÷ 100 or 0.45.

·  A percent is a portion of 100.

Examples of Jobs which earn commissions

1.  Real estate agents

2.  Car dealers

3.  Pharmaceutical sales representatives.

** A commission is a percentage, or part, of sales**

For example, a real estate agent earns a portion of the selling price of a house that she helps a client purchase or sell. A car dealer earns a portion of the selling price of an automobile that she sells.

Example: Real Estate Agent

Justin sold real estate worth $5 000 000. He earns 3% commission on his sales.

How much money did he earn?

commission = 3% x 5000000

= x5000000

=$150000

Complete the following questions:

1) Complete the following table. Show your work in within the table.

Amount of sales / Rate of commission / Commission
$ 500.00 / 10%
$ 2000.00 / 40%
Amount of sales / Rate of commission / Commission
$1500.00 / 5%
$3000.00 / 8%
$7216.50 / 2.5%
$898.20 / 16%
$2843.92 / 7.6%

2)  A salesperson from a furniture store receives a 9% commission. How much money will the salesperson earn after selling $1200.00 worth of furniture?

3)  A real estate agent earns 2.4% on the sale of a house priced at $489, 950.00. Calculate the amount of the commission.

Commission plus base pay

Sometimes people are paid an hourly wage and a commission, or a salary and a commission.

To determine the person's earnings calculate how much they were paid by each method and add your answers together.

Ex: Robby is a sales clerk in a bicycle shop. He is paid $7.25/hour and receives a commission of 6% of his sales. One week he worked 37.5 hours and sold $2319.75.

Calculate Robby's total earnings.

hourly earnings = $7.25 x 37.5 commission earnings = x $2319.75

~$271.88 ~ $139.19

Total earnings = $271.88 + $139.19

=$411.07

Robby's total earnings for the week are $411.07

Complete the following questions:

1) Jim works part time in the clothing department in a large store. He is paid a salary of $150.00 a month for the 4 Saturdays he works plus a 3% commission on his total sales. How much does Jim earn for the month of May if his sales totaled $6,230.00?

2) Julie is a beauty consultant for Pretty People Cosmetics. She is paid $300/week plus a commission of 38% of sales. Her sales for one 4-week interval are shown in the table. How much did she earn in the 4-week period?

Week / 1 / 2 / 3 / 4
Amount of sales / $785 / $472 / $1052 / $976