# Commission

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Education

Published on November 11, 2008

Author: nora823

Source: slideshare.net

## Description

Lesson on commission I made for my 8th graders.

Commission

What is a commission? A commission is a fee paid to a person who makes a sale. The commission is usually a percent of the selling price. The percent is called the commission rate . commission  commission rate  total sales

A commission is a fee paid to a person who makes a sale.

The commission is usually a percent of the selling price. The percent is called the commission rate .

Example 1 Carmen Pena works in an appliance store. She is paid a 5% commission rate on all appliances that she sells. What is her commission on the sale of a television set that costs \$369? commission  commission rate  total sales 5%  369 .05 x 369 \$18.45  Make sure you convert to a decimal!

Carmen Pena works in an appliance store. She is paid a 5% commission rate on all appliances that she sells. What is her commission on the sale of a television set that costs \$369?

Example 2 Suppose the commission rate is 8%. Find the commission on a \$675 refrigerator. commission  commission rate  total sales 8%  675 .08 x 675 \$54  Make sure you convert to a decimal!

Suppose the commission rate is 8%. Find the commission on a \$675 refrigerator.

Try This! commission rate: 5% total sales: \$200 commission: __________ Commission x Sales 5% x 200 .05 x 200 = 10 commission rate: 6% total sales: \$1,500 commission: __________ Commission x Sales 6% x 1500 .06 x 1500 = 90

commission rate: 5%

total sales: \$200

commission: __________

Other salespeople are paid a commission plus a regular salary. Their total pay is a percent of the sales they make plus a salary. total pay  commission + salary

Other salespeople are paid a commission plus a regular salary. Their total pay is a percent of the sales they make plus a salary.

Example 3 Josh earns a weekly salary of \$300 and a 6% commission on his sales. Last week his sales totaled \$3,500. What was his total pay? Think: total pay, t  commission rate  total sales  salary 6% 3500 300   Make sure you convert to a decimal! = .06  3500 + 300 = 210 + 300 = 510 total pay, t

Josh earns a weekly salary of \$300 and a 6% commission on his sales. Last week his sales totaled \$3,500. What was his total pay?

Try This! Commission rate: 3% Total sales: \$1800 Salary: \$250 Total Pay: __________ Commission x Sales 3% x 1800 .03 x 1800 = 54 54 + 250 = \$304 Commission x Sales 2% x 25000 .02 x 25000 = 500 500 + 400 = \$900 Commission rate: 2% Total sales: \$25,000 Salary: \$400 Total Pay: __________

Commission rate: 3%

Total sales: \$1800

Salary: \$250

Total Pay: __________

Finding the Commission Rate The commission on the sale of a \$1,150 video camera is \$69. What was the commission rate? What percent of 1150 is 69? Let r  commission rate. is of 69 1150  Commission Rate = 6% Make sure you convert to a percent! Remember!!

The commission on the sale of a \$1,150 video camera is \$69. What was the commission rate?

Try This! Total sales: \$5000 Commission Rate:______ Commission: \$250 Commission / Sales 250 / 5000 25 / 500 = 1/20 = 5% Total sales: \$2800 Commission Rate:______ Commission: \$700 Commission / Sales 700 / 2800 7 / 28 = ¼ = 25%

Total sales: \$5000

Commission Rate:______

Commission: \$250

Finding the Selling Price The commission rate is 3% and the commission on the software sale is \$18. What is the selling price? 3 % of what number is 18? Remember!! is of % 100 = 18 x 3 100 = 3 x = 1800 x = 600 The selling price is \$600

The commission rate is 3% and the commission on the software sale is \$18. What is the selling price?

Try This! Total sales:________ Commission Rate: 4% Commission: \$50 Total sales:________ Commission Rate: 5% Commission: \$400 4x = 5000 x = 1250 5x = 40000 x = 8000 50 x 4 100 = 400 x 5 100 =

Total sales:________

Commission Rate: 4%

Commission: \$50

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