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

2. 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 $ and 2.5% of the balance. or
0% of the first $ and 2.5% of the balance.

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

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

5. 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