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1
CommissionCommission
Press Ctrl-APress Ctrl-A©2009 – Not to be sold/Free to use
Stage 5Stage 5Year 9Year 9
2
Commission (1/4)
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 $10 000 and 2.5% of the balance.
or
0% of the first $10 000 and 2.5% of the balance.
End ofSlide
3
Commission (2/4)
Example 1:
Sarah earns a commission of 4% on sales of $50 000.
What is her commission?
Commission = 0.04
4% as a decimal (Rate of commission)
x 50 000 Sales
= $2
000
End ofSlide
4
Commission (3/4)
Example 2: John earns a commission of 5% on
sales up to $150 000 and 2.5% of the balance.
What commission on sales of $400 000?
Commission =
0.05
(Rate of commission)5% as a decimal
x 150
000
Basic Sales
+
0.025 2.5% as a decimal
x (400 000 – 150
000)
Balance over $150 000
= $13 750
End ofSlide
5
Commission (4/4)
Example 3: Jane is paid a retainer of $500 and earns a
commission of 3% on sales over $3 000.
What is her commission on sales of $5 600?
Commission = 500
Retainer
+ 0.03
3% as a decimal
x (5 600 – 3
000) Balance over $3
000 = $578
End ofShow