1. Commission, Sales Tax, and Profit
Unit 2, Lesson 3
Commission, Sales Tax, and Profit

2. Warm Up
Estimate.
1. 20% of 602
out of 264
3. 151% of 78
out of 0.95
Possible answers:
120
50%
120
30%

3. A commission is a fee paid to a person who makes a sale
A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate.
commission rate  sales = commission

4. Class Example
A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month?
First find his commission.
4%  $65,000 = c commission rate  sales = commission
0.04  65,000 = c Change the percent
to a decimal.
2600 = c Solve for c.

5. Class Example: Continued
A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month?
He earned a commission of $2600 on the sale.
Now find his total pay for last month.
$ $900 = $ commission + salary = total pay.
His total pay for last month was $3500.

6. First find her commission.
Practice Problem 1
A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month?
First find her commission.
5%  $50,000 = c commission rate  sales = commission
Hiding Slide 7
0.05  50,000 = c Change the percent to a decimal.
2500 = c Solve for c.

7. Practice Problem 1 (Continued)
A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month?
The agent earned a commission of $2500 on the sale.
Now find her total pay for last month.
Hiding Slide 8
$ $700 = $ commission + salary = total pay.
Her total pay for last month was $3200.

8. Sales tax is the tax on the sale of an item or service
Sales tax is the tax on the sale of an item or service. It is a percent of the purchase price and is collected by the seller.

9. Class Example
If the sales tax rate is 6.75%, how much tax would Adrian pay if he bought two CDs at $16.99 each and one DVD for $36.29?
CD: 2 at $ $33.98
DVD: 1 at $ $36.29
$70.27 Total Price
 = Write the tax rate as a decimal and multiply by the total price.
Adrian would pay $4.74 in sales tax.

10. $45  2 = $90 Find the total price for the hotel stay.
Practice Problem 2
Amy reserves a hotel room for $45 per night. She stays for two nights and pays a sales tax of 13%. How much tax did she pay?
$45  2 = $90 Find the total price for the hotel stay.
$90  0.13 = $ Write the tax rate as a decimal and multiply by the total price.
Hiding Slide 11
Amy spent $11.70 on sales tax.

11. Practice Problem 3
Anna earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Anna’s earnings are withheld for Social Security and Medicare?
Think: What percent of $1500 is $114.75?
114.75
1500 n
100 =
Set up a proportion.
n  1500 = 100  Find the cross products.
1500n = 11, Simplify.

12. Practice Problem 3 Continued
Anna earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Anna’s earnings are withheld for Social Security and Medicare?
11,475
1500 n =
Divide both sides by 1500
n = 7.65
Simplify.
7.65% of Anna’s earnings is withheld for Social Security and Medicare.