©G Dear 2008 – Not to be sold/Free to use General Mathematics Preliminary Earning Money Commission Stage 6 - Year 11 Press Ctrl-A ©G Dear 2008 – Not to be sold/Free to use

A commission is paid as a percentage of an employees sales. A retainer is a fixed payment ,to keep a salesman, irrespective of sales. Commission may be paid on a sliding scale. E.g. 5% of the first $10 000 and 2.5% of the balance. or 0% of the first $10 000 and 2.5% of the balance.

Sarah earns a commission of 4% on sales of $50 000. Example 1: Sarah earns a commission of 4% on sales of $50 000. What is her commission? (Rate of commission) 4% as a decimal  Sales  Commission = 0.04 x $50 000 = $2 000

What’s his commission on sales of $400 000? Example 2: John earns a commission of 5% on sales up to $150 000 and 2.5% of the balance. What’s his commission on sales of $400 000? (Rate of commission) 5% as a decimal  2.5% as a decimal  Commission = 0.05 x 150 000 + 0.025 x (400 000 – 150 000)  Basic Sales  Balance in excess of $150 000 = $13 750

What’s her commission on sales of $5 600? Example 3: Jane is paid a retainer of $500 and earns a commission of 3% on sales over $3 000. What’s her commission on sales of $5 600? Retainer  Balance over $3 000  Earnings = $500 + 0.03 x (5 600 – 3 000)  3% as a decimal = $578