Pretty Marianne Iole M.

Nool 11-Beryl

BUSINESS MATHEMATICS
Different Types of Commissions
Activity 1

1.) Juan makes money by commission rates. He gets 15% of everything he sells. If Juan sold
PhP230,000 worth of items this month, what is his salary for the month?

Solution: Total Sales = ₱ 230,000

Commission = ₱ 230,000 x 15%

= ₱ 230,000 x 0.15

Commission = ₱ 34,500

Therefore, Juan’s salary for the month is ₱ 34,500.00

2.) Mark makes PhP12,000 a month plus some money by commission rates. He gets 8% of everything he
sells. If Mark sold PhP60,000 worth of items this month, what is his salary for the month?

Solution: Monthly salary = ₱ 12,000 Gross Pay = Monthly salary + Commission

Commission = ₱ 60,000 x 8% = ₱ 12,000 + ₱ 4,800

= ₱ 60,000 x 0.08 Gross Pay = ₱ 16,800

Commission = ₱ 4,800

Therefore, Mark’s salary for the month is ₱ 16,800.00

3.) John receives PhP10,000 as monthly salary. As an agent, his monthly quota is PhP50,000
worth of beauty products for which he gets 5% commission on all sales beyond his monthly quota. If he
sold PhP75,000 worth of beauty products this month, what is his total salary for this month?

Solution: Monthly salary = ₱ 10,000 Gross Pay = Monthly salary + Commission

Commission = ₱ 25,000 x 5% = ₱ 10,000 + ₱ 1,250

= ₱ 25,000 x 0.05 Gross Pay = ₱ 11,250

Commission = ₱ 1,250

Therefore, John’s total salary for the month is ₱ 11,250.00

4.) A sales agent receives PhP12,000 a month corresponding to a sales of PhP30,000 worth of goods.
Furthermore, he receives an additional 6% commission for all sales beyond his monthly quota but not
greater than PhP50,000. An additional 3% commission is for sales beyond PhP50,000. If his sales is
PhP70,000 for the month, how much is his salary for the month?
 Solution: Salary = ₱ 12,000

First Commission = ₱ 20,000 x 6%

= ₱ 20,000 x 0.06

= ₱ 1,200

Second Commission = (₱ 70,000 - ₱ 50,000) x 3%

= ₱ 20,000 x 0.03

= ₱ 600

Gross Pay = ₱ 12,000 + ₱ 1,200 + ₱ 600

Gross Pay = ₱ 13,800

Therefore, the agent’s salary for the month is ₱ 13,800.00

Activity 2
Write a real life problems (examples) that illustrate the different types of commissions. (5 pts. each)
1.) Straight Commission
o The Manzano family purchases ₱350,000 in life insurance from an insurance broker. How much
will they pay the insurance broker if she charges a 0.5% commission?

Answer: The Manzano family will pay their insurance broker a commission of ₱1,750.00.
3.) Salary plus Commission
o Sue is a salesperson that works on salary plus 8% commission, however, she has a quota to reach
of ₱4,000.00 before she makes any commission money. Last month she sold ₱10,000.00 in sales
and she earns a salary of ₱5,000 a month. What was her gross pay?
 
Answer: Sue’s gross pay is ₱5,480.00.

3.) Graduated Commission

o Pretty, the assistant manager of a clothing store, earns a salary or ₱5,000.00 per month. She also
receives a 5% commission on the first ₱9,000.00 she sells, and 6% on sales over $9000.00. If
Barb sold ₱17,000 worth of clothes last month, what was her total pay?
 
Answer: Pretty’s total pay is ₱5,930.00.

Pretty Marianne Iole M. Nool 11-Beryl

BUSINESS MATHEMATICS
Activity
1.) A tutor at ABM Learning Center receives a monthly base pay of PhP8,000 corresponding to a
PhP15,000 tutorial fee input to the Center. He gets a share of 15% of all tutorial fees beyond the
mandatory PhP15,000 input. If each student he handles pays PhP6,000/month on tutorial fees and he
has five students for the month, how much share does he receive beyond his base pay?
Solution: ₱6,000 x 5 = ₱30,000
Commission = (₱30,000 - ₱15,000) x 15%
 = ₱15,000 x 0.15
= ₱2,250
Therefore, the tutor will receive a share of ₱2,250.00 beyond his base pay.
2.) A salesperson gets a commission for his sales based on the following scale: 6% on all
sales, 5% on all sales between PhP50,000 and PhP100,000 4% on all sales over
PhP100,000. If his total sales was PhP150,000, what is his gross pay?
Solution: First Commission: ₱150,000 x 6% = ₱9,000

Second Commission: ₱50,000 x 5% = ₱2,500

Third Commission: ₱50,000 x 4% = ₱2,000

Gross Pay: ₱9,000 + ₱2,500 + ₱2,000 = ₱13,500

Threfore, the salesperson gross pay is ₱13,500.00
3.) A real-estate agent receives a 3% commission of PhP300,000 for selling a house. What was the price
of the house?
Solution: PhP300,000 represents 3% of the total cost of the house ;
let x be the cost of the house
3% X = ₱300,000
3% 3%
X = ₱10,000,000
Therefore, the price of the house is ₱10,000,000
4.) An appliance center agent sold a set of kitchen utensils for PhP20,000 and got a PhP600
commission. What was the commission rate?
Solution: Commission Rate: ₱600 = r % (₱20,000)
₱20,000 ₱20,000

r = 0.03 or 3%
Therefore, the commission rate is 3%.

5.) Cardo earns a commission of 10% which is PhP10,000. How much did he sell?
Solution: Let X be the amount Cardo sell
₱10,000 = 10% X

10% 10%
X = ₱100,000
Therefore, Cardo sold ₱100,000.00
6.) Mario sold his house for PhP8,000,000. The real-estate agent got a 5% commission from the sales.
From his commission, he has to pay BIR tax and other obligations required for the transfer of ownership
of the property to the buyer. This expense represents 6% of his total commission. How much net amount
will he receive?
Solution: Commission = ₱8,000,000 x 5%
 = ₱8,000,000 x 0.05
= ₱400,000
Net Amount = ₱400,000 – (₱400,000 x 0.06)
= ₱400,000 - ₱24,000
= ₱376,000
Therefore, the net amount Mario will receives corresponds to 94% of PhP400,000 which is
PhP376,000.