Commission and Graduated Commission Business Mathematics Sections 1.6 and 1.7

Commission Commission is the amount of money that you are paid for selling a product or service Commission rate is a specified amount of money paid to an employee for each sale made or a percent of the total value of sales made Straight Commission is pay that consists only of money earned on sales

Commission What are some jobs that pay commission? Sales representative Real-estate broker Travel Agent Insurance Agent

Commission Commission = Total sales x Commission Rate

1. Milton Arps sells real estate at 7½ percent straight commission 1. Milton Arps sells real estate at 7½ percent straight commission. Last week his sales totaled $290,000. What was his commission?

2. Shawna works for Cintas selling medical supplies to businesses in the Pittsburgh region. She earns straight commission at a commission rate of 8%. If last week she sold $9,400 of supplies, how much commission did she make?

3. Tanya Woods sells advertisements for billboards in Beaver County 3. Tanya Woods sells advertisements for billboards in Beaver County. She earns 5½ percent commission on the total cost of ads sold. Over the last 3 months, she sold $143,400 in advertisements. How much commission did she make?

Commission vs. Salary Instead of working only on commission, you might be guaranteed a minimum weekly or monthly salary. The commission you earn during a week or month is compared to your minimum salary. Your gross pay is the greater of the two amounts In other words, you must choose which of the two you would like to keep as your gross pay Gross pay = salary OR commission

4. Owen Theil is guaranteed a minimum salary of $250 a week, or 7 percent of his total sales, depending on whichever is greater. What is his gross pay for a week in which his total sales were $3,614?

5. Enrique Martinez earns a commission rate of 6¾ percent of his total monthly sales or he is guaranteed a minimum monthly salary of $24,600. He earned $355,555 last month. What is his gross pay?

6. Jermaine Dixon has a minimum weekly salary of $250 6. Jermaine Dixon has a minimum weekly salary of $250. His commission rate is 5.65% and last week’s sales were $1,515. What is his gross pay?

Graduated Commission You could also have your commission rate increase as your sales increase. This is known as graduated commission Graduated commission offers different rates of commission for each of several levels of sales. Employers offer this as incentive and motivation to sell more

7. Irene Gomez sells appliances at Twin City Sales 7. Irene Gomez sells appliances at Twin City Sales. She receives a graduated commission as shown below. Gomez’s sales for the past month totaled $9,840. What is her commission for the month? Commission Percent Level of Sales 4% First $1,000 6% Next $2,000 8% Over $3,000

8. Hannah Marie works as a sales person 8. Hannah Marie works as a sales person. She receives a graduated commission as shown on the table below. Find the total commission she would receive for $13,200 in sales. Commission Percent Level of Sales 6% First $10,000 8% Over $10,000

9. Emily Phillips receives graduated commission 9. Emily Phillips receives graduated commission. Her commission percent changes as her sales level increases. Find the total graduated commission she would receive on $8,962 worth of sales. Commission Percent Level of Sales 4% First $8,000 6% Over $8,000