1. Business Math
1.4 Commissions

2. Goals Calculate straight commission earnings
Calculate commission earnings based on quota
Calculate graduated commission earning
Find the rate of commission

3. Start Up
Two sales jobs are advertised in the newspaper. The first job pays a commission of 3.5% on all sales, and sales usually average $52,000. The second job pays a commission of 4% on sales up to $5,000 and 12% on sales over $5000, and the sales usually average $25,000 a month. Based on the usual monthly sales average, which job pays more?
Do Math Builder page 20

4. Straight Commission
Commission – may be an amount for each item sold, or a percentage of the dollar value of sales.
Straight commission - when the earning for a person come only from the amount they sell.
Quantity sold * Rate of commission = commission

5. Commission based on quota
Quota – the fixed amount a sales person must sell before they can start earning commission
(sales-quota)*commission rate = commission

6. Graduated Commission
Graduated Commission – the rate of commission increases as sales increase

7. Rate of commission on sales
To find the rate of commission take the amount of commission paid / sales
Wrap up Page 23
In a Group discuss communication page 23