Professional Documents
Culture Documents
Business
Mathematics
Quarter 2 – Module 10:
Commissions
Writer:
IRISHGEL M. CABASISI
Teacher II – Caduang Tete National High School
(Macabebe)
Editors:
JANE P. VALENCIA, Ed.D. – EPS – Mathematics (CHAIRMAN)
CHARIZEL T. ARCILLA – SPST-I Malino National High School
JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
What I Need to Know
This will give you an idea of the skills or competencies you are expected to learn
in the module.
What I Know
This part includes an activity that aims to check what you already know about
the lesson to take. If you get all the answers correct (100%), you may decide to skip this
module.
Direction: Choose the letter of the correct answer. Write the letter of your answer on a
separate sheet of paper. Show your solution.
3. What do call a type of commission where a person gets paid a salary and a
percentage of his/her sales?
a. Straight commission c. Salary Plus Commission
b. Commission rate d. Graduated Commission
4. What do call a type of commission where the percentage changes based on how
much someone sells?
a. Straight commission c. Salary Plus Commission
b. Commission rate d. Graduated Commission
2
5. John is earning a commission of 3% on all his sales other than his basic salary
of ₱10,000. How much is his take home pay in a month where his sales amount
to ₱75,000?
a. ₱10,000.00 c. ₱75,000.00
b. ₱25,1200.00 d. ₱12,250.00
3
Lesson
Basic Concepts of
1 Commissions
What’s In
As a recall of our previous lesson about Interest, read and analyze the given
problem and then solve. Don’t forget to show your complete solution. Write your
answers on your notebook.
What’s New
Erick resigned from his job out of boredom and took a new job as a sales
representative. Believing that he will enjoy more in this new job, he didn’t really mind
what he will get. The following are the options he was offered:
What option would he probably choose? Read analyze this module for you to be
able to help Eric to decide which option he should take.
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What is It
Commission is a fee paid to person who makes a sale. The commission is usually a
percent of the selling price. The percent is called the Commission Rate
1. Straight Commission
2. Salary Plus Commission
3. Graduated Commission
Straight Commission
It is a type of commission where a person is paid a percentage of his/her sales
only. Let us take a look at this example:
Example:
Karyl works on a “commission only” basis and receives 3% on her monthly sales
without a base salary. What is her commission and total pay during a month when
she sells ₱108,000 worth of appliance, compute for the commission.
Solution: The commission will be 3% of ₱108,000.
And that is, ₱108,000(0.03) = ₱3,240
Example:
Mr. Cueva decides to work for ABX Company that will pay him ₱3,500 per week
and 6% of any sales above ₱3,000. If he sold goods worth ₱5,000, what is his gross
pay?
Solution: ₱5,000 – ₱3,000 = ₱2,000
His commission will be 6% of ₱2,000 and that is: (₱2,000)(0.06)
Commission = ₱120
His gross pay is computed as ₱3,500 + ₱120 = ₱3,620
5
Graduated Commission
It is a type of commission where the percentage changes based on how much
someone sells. Most of the companies encourage their agents to sell more goods. Let
us take a look at this example:
Example:
Mary has a monthly commission plan where she receives 2.5% on the first
₱100,000 of sales during the month and 3.5% on the sales above ₱100,000. If her
total sales during the month is ₱150,000, compute her commission.
Solution: 150,000 – 100,000 = ₱50,000
Example:
A salesman, earning 4% commission made a sale of ₱100,000 to be paid in 5
equal monthly installments. How much will be his monthly commission?
Solution: ₱100,000 ÷ 5 = ₱20,000
4% of 20, 000 is ₱800.00
Therefore the salesman’s monthly commission is ₱800.00
6
What’s More
1. Sonny works as a furniture salesman and earns a base salary of ₱1,550 per week
plus 6% commission on sales. What was Sonny’s weekly gross salary if his total sales
were ₱57,000?
2. Veronika works at Future Shop and earns ₱350 per hour plus 6% commission on
sales. Last week Veronika worked 40 hours. What was Veronika’s weekly gross salary
if her total sales were ₱25,000?
3. William earns straight commission as a real-estate agent. Last month his total sales
were ₱971,168.00. If William earns a 3% rate of commission, what was his gross
income last month?
4. Sophia earns straight commission selling cell phone contracts. Last month she sold
341 cell phone contracts worth a total of ₱238,192.00. If Sophia earns a 5% rate of
commission, what was her gross income last month?
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What I Have Learned
WRAP UP! Supply the necessary answers to complete the statements about
commissions. Write your answers on your notebook.
What I Can Do
Solve the problem. Don’t forget to show your complete solution. Write your answers on
your notebook.
Imagine that you are the CEO of a certain company. As the CEO of company,
you have decided to have a 3.5% commission on every total sales of your employees.
You wish to tabulate the total commissions of your employees by making use of the
data. Solve the given problem in order to complete the table.
SALES COMMISSION
EMPLOYEE COMMISSION
AMOUNT RATE
A 300,000 3.5%
B 250,000 3.5%
C 175,000 3.5%
D 115,000 3.5%
E 45,000 3.5%
TOTAL COMMISSIONS OF ALL EMPLOYEES
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Assessment
Direction: Choose the letter of the best answer. Write the chosen letter on your
notebook.
1. What do call a type of commission where a person gets paid a salary and a
percentage of his/her sales?
a. Straight commission c. Salary Plus Commission
b. Commission rate d. Graduated Commission
2. What do call a type of commission where the percentage changes based on how
much someone sells?
a. Straight commission c. Salary Plus Commission
b. Commission rate d. Graduated Commission
6. John is earning a commission of 3% on all his sales other than his basic salary
of ₱10,000. How much is his take home pay in a month where his sales amount
to ₱75,000?
a. ₱10,000.00 c. ₱75,000.00
b. ₱25,1200.00 d. ₱12,250.00
9
Additional Activities
Rosie sold an emerald necklace that cost ₱397,500 and she will get 1%
commission. She sold ruby earrings that cost ₱106,000 and she will get 4%
commission. Which piece of jewelry gives her more commission?
10
11
Additional Assessment What I Have
Activities 1. C
Learned
Answer: Ruby Earrings 2. D 1. Commission
3. A 2. Commission
4. C
Rate
5. C
6. D
3. Straight, Salary
7. 19.5 Plus and
8. 44 Graduated
9. 99 Commission
10. 150 4. Straight
11. 414 Commission
12. 900 5. Salary Plus
13. 2 750 Commission
14. 7 500 6. Graduated
15. 11 200 Commission
What’s In What I Know
What’s More
1. 4 970 1. A
2. 15 500 2. C
Activity 1.2 3. C
4. D
1. 68 5. D
2. 200 What’s More 6. A
3. 550 7. 54
4. 5 000 8. 304
5. 12 100 Activity 1.1 9. 315.6
1. 63,655 10.737.8
What I Can Do 2. 10,100 11.1500
3. 29,135.04 12.11,000
A. 10 500 4. 11,909.60 13.17,450
B. 8 750 5. 15,318.72 14.7,017.50
C. 6 125 15.20,000
D. 4 025
Answer Key
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