1. Commissions, Royalties, & Piecework Pay
Unit 2A - Finance

2. Pay Plans Yesterday, we covered:
Annual Salary – paid by the year
Hourly Pay – paid by the hour
What other types of pay plans are there?
Commission
Paid according to money from sales; usually expressed as a %
Royalty
Paid according to money from sales (you are not seller)
Piecework Pay
Paid according to units produced

3. Commission Some jobs that get paid commission: Real Estate Agent
Salesmen for department stores
TV – Sales
Any type of sales job

4. Royalties Some jobs that pay royalties Author Movie Director
Actor/Actress
Musician

5. Piecework Pay Jobs that have piecework pay plans: Newspaper delivery
Field workers (pick corn, strawberries, etc)
Factory workers

6. Advantages vs. Disadvantages
As an employee, what are the advantages of being paid commission or piecework?
What are the disadvantages?
As an employer, what are the advantages of being paid commission or piecework?

7. Example 1:
Dan wrote a textbook for high school students. He receives10% royalty based on total sales. The book sells for $47.95 and 17,000 copies were sold last year. How much did Dan receive?
17,000 x = 815,150
815,150 x .10 = 81,515

8. Example 2
Allison sells cosmetics part-time. She is paid a monthly commission. She receives 11% of her first $900 in sales and 17% of any balance above $900. Last month she sold $1,250 worth of cosmetics. How much commission did she earn last month?
900 x 0.11 = 99.00
1,250 – 900 = 350
350 x 0.17 = 59.50 =

9. Example 3:
Tony picked strawberries and gets paid a piecework rate of 45 cents per container for the first 200 containers picked. He receives 65 cents per container for every container over Last week Tony picked 270 containers. How much did he earn?
200 x 0.45 = 90
= 70
70 x 0.65 = 45.50 =