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Commission Notes

 Commission is a percentage calculated from the total amount of a


sold item. This percentage value is always given in the question.
 Sometimes commission is only paid for items above a certain
amount or value.
 The percentage for commission may vary between different
companies and employers.
 Commission is paid additionally to the basic wage.

Key Words for Word Problems


All sales over/ all sales above- This phrase is used when commission
is only calculated if a particular value is passed. 

Gross Wage- the total wage given to a person {includes commission}. 


Commission Value- the amount of money earned from a commission
percentage

Formulas
percentage
Comission= × Sales amount
100
GrossWage=The basic wage+the comission
The Comission=gross wage−basic wage
Basic Wage=Gross wage−thecomission

Example
A sales assistant is paid a basic wage of $125 per week. In addition, she
is paid a commission of 2.5% on the value of the goods she sells. How
much commission will she be paid on sales amounting to $1476 and
what is her gross wage for that week?
Solution
The amount of commission earned
The percentage rate of commission= 2.5%
Basic wage= $1476
2.5
Commission earned= 100 × $ 1476
                                = $36.90

The gross wage earned


Basic Wage= $125
Commission= $36.90
Gross wage= $125 + $36.90
                         = $161.90

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