Commission

We will look at 3 different

forms of commission

1. Straight Commission
2. Salary plus Commission
3. Graduated Commission
 Straight Commission

Straight commission is when a

person is paid a % of sales only.

Example 1
Harry receives 30% commission on the appliances he sells.
If he sells a TV for $350.00, a Refrigerator for $400.00
and a heater for $440.00 how much does Harry make in
commission?

(350 + 400 + 440) = $1190

1190 x .30 = $357
 Straight Commission
Juliet receives 25% commission on the
appliances she sells. If she sells a
computer for $450.00 , a printer for
$200.00 and a cellphone for$ 508.00,
how much does juliet make in
commission?(diesel)

450+200+508=$1158
1158(.25)=$289.50
 Salary plus Commission

This is exactly as it sounds, a person

gets paid a salary and a % of sales.

example 2
Harry decides to work for another company that will pay him
$350 per week and 6% of any sales above $3000. If he sold
goods worth $5688.00 what is his gross pay?

5688 - 3000 = $2688

2688 x .06 = $161.28 Commission
161.28 + 350 = $511.28 Gross Pay
 Graduated Commission
This is when the % changes based on
how much someone sells.
Example 3
Steve works for a company that pays him 1% on the first
$5000 sold, 2% on the next $15000 sold and 3% on all sales
over $20 000. What is his gross pay if he sells $25 000?

5000 x .01 = $50

25 000 - 5000 = $20000

15000 x .02 = $300

20000 - 15000 = $5000

5000 x .03 = $150

50 + 300 + 150 = $500