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Commission, Sales Tax, and Profit
Unit 2, Lesson 3 Commission, Sales Tax, and Profit
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Warm Up Estimate. 1. 20% of 602 out of 264 3. 151% of 78 out of 0.95 Possible answers: 120 50% 120 30%
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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
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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.
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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.
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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.
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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.
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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.
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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.
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$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.
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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.
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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.
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