Department of Education: Republic of The Philippines

Republic of the Philippines
Department of Education
Region I
SCHOOLS DIVISION OFFICE I PANGASINAN
BALINGASAY NATIONAL HIGH SCHOOL
BALINGASAY, BOLINAO, PANGASINAN
SEMI-DETAILED LESSON PLAN IN Business Mathematics

GRADE 11-ABM
TEACHING DATE AND TIME: QUARTER: WEEK:
November 7, 2022 2 1
I. LEARNING COMPETENCIES/OBJECTIVES
1. Illustrate the different types of commissions
2. Compute commission on cash basis and commission on installment basis
3. Compute down payment, gross balance and current increased balance
II. CONTENT
1. The fundamental operations of mathematics as applied in salaries and wages
III. LEARNING RESOURCES
References: BM- Grade 11 Alternative Delivery Mode
Materials: Laptop, Smart TV, PowerPoint Presentation
IV. PROCEDURES
A. Preliminary Activities
- Prayer
- Greetings
- Checking of Attendance
B. Presentation of the lesson

Lesson 1: Commissions
Commissions are computed as a portion of the net sales.
Types of Commissions
Address: Balingasay, Bolinao, Pangasinan

Telephone No.: 09988695211
Email address: balingasaynationalhighschool@gmail.com
Region I
1. Straight commission – This is given when a person is paid a percentage (%) of sales only.
Examples:
a) A stock broker receives a commission of 7% for selling annuities to her clients. If she sells ₱250,000, how much commission will she earn?
Solution: Since the stock broker receives 7% commission based on sales, she’ll earn:
250,000 × 0.07 = 17,500
Thus, the stock broker will earn ₱17,500 commission.
b) . Harry receives 30% commission on the appliances he sells. If he sells a TV for ₱17,000, a refrigerator for ₱20,000 and a heater for
₱22,000, how much does Harry make in commission?
Solution: Since Harry receives 30% commission based on sales, he’ll earn:
(17,000 + 20,000 + 22,000) × .3 = 17,700
Thus, the Harry will earn ₱17,700 commission.
2. Salary plus commission – This is exactly as it sounds, a person gets paid a salary and a % of sales.
Examples:
a) Christian works as a sales agent for a company and earns a basic monthly salary of ₱8,000 plus 5% commission on all his sales. If he made
total sales of ₱50,000 for the month, how much is his gross pay for the month?
Solution:
₱50,000 × .05 = ₱2,500
₱2,500(commission) + ₱8,000(salary) = ₱10,500
Thus, the Christian will earn ₱10,500 salary and commission.
b) Harry decides to work for another company that will pay him ₱17,500 per week and 6% of any sales above ₱150,000. If he sold goods worth
₱284,400, what is his gross pay?
Solution: ₱284,400 – ₱150,000 = ₱134,400
₱134,400 × 0.06 = ₱8,064 (Commission)
₱8,064(commission) + ₱17,500(salary) = ₱25,564
3. Graduated Commission – This is when percentage (%) changes based on how much someone sells
Examples:

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a) Steve works for a company that pays him 1% on the first ₱250,000 sold, 2% on the next ₱750,000 and 3% on all sales over ₱1,000,000.
What is his gross pay if he sells ₱1,250,000?
Solution: ₱250,000 × 0.01 = ₱2,500
₱1,250,000 – ₱250,000 = ₱1,000,000
₱750,000 × 0.02 = ₱15,000
₱1,000,000 – ₱750,000 = ₱250,000
₱250,000 × 0.03 = ₱7,500
Total: ₱2,500 + ₱15,000 + ₱7,500 = ₱25,000
Thus, Steve will receive a total of ₱25,000 as his commission.
a) Ana, the assistant manager of a clothing store earns a salary of ₱17,500 per month. She also receives a 5% commission on the first
₱450,000 she sells, and 6% commission on sales above ₱450,000. If Ana sold ₱850,000 worth of clothes last month, what was her total pay?
Solution: ₱450,000 × 0.05 = ₱22,500 (first commission)
₱850,000 – ₱450,000 = ₱400,000
₱400,000 × 0.06 = ₱24,000 (second commission)
₱22,500 + ₱24,000 = ₱46,500 (first + second commission)
₱46,500 + ₱17,500 = ₱64,000 (total commission plus salary)
Ana earned a total of ₱64,000 last month.
Cash vs. Installment

a. Computing Commissions on Cash Basis – This type of commission is similar to computing straight commissions.
Example 1:
Kevin works at Luna’s watch store. For every cash purchase of a watch, he gets 6.1% commission. In a particular month, he was able to sell 10
watches costing ₱8,000 each. How much was his total commission for such cash sales?
Solution:
Total Sales = ₱18,000/watch × 10 watches = ₱180,000
Cash commission = ₱180,000 × 6.1% = 180,000 × 0.061 = 10,980
Thus, Kevin’s total commission is ₱10,980.

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b. Commission on Installment Basis – commission is computed based on partial payments upon the agreed installment method.
Example 2:
At Luna’s store, some items are paid on installment basis through credit cards. Kevin was able to sell 10 watches costing ₱18,000 each. Each
transaction is payable in 6 months divided into 6 equal installments without interest. Kevin gets 2% commission on the first month for each of
the 10 watches. Commission decreases by 0.3% every month thereafter and computed on the outstanding balance for the month. How much
commission does Mike receive on the first month? On the second month? Third? Fourth? Fifth? Sixth month? At the end of installment period,
how much will be his total commission?
Solution:
First month commission: ₱18,000/watch × 10 watches × 0.02 = ₱3,600
Second month commission: ₱15,000/watch × 10 watches × (0.02 – 0.003) = ₱2,550
Third month commission: ₱12,000/watch × 10 watches × (0.017 – 0.003) = ₱1,680
Fourth month commission: ₱9,000/watch × 10 watches × (0.014 – 0.003) = ₱990
Fifth month commission: ₱6,000/watch × 10 watches × (0.011 – 0.003) = ₱480
Sixth month commission: ₱3,000/watch × 10 watches × (0.008 – 0.003) = ₱150
His total commission for six months is: ₱2,550 + ₱1,680 + ₱990 + ₱480 + ₱150 = ₱9,450.
Note: The base price of the watch is subtracted by 3,000 for each month since it was stated in the problem that the price is will be paid
in 6 equal payments. Thus 18,000/6 = 3,000.
THE DOWN PAYMENT
Down payment is an initial payment made when something is bought on credit. The down payment is a first payment that one makes when
one buys something with an agreement to pay the rest later.
How do we obtain the down payment?
Example#1:
When one purchases a car or any big item not through cash but installment terms, normally, a certain down payment is required of the buyer.
Car dealers normally require a minimum down payment, which is usually 20% of the total cost of the vehicle purchased. The interest on the
remaining balance is then computed depending on the number of years a buyer would want to amortize the remaining balance. If a car costs
₱1,000,000 and a minimum 20% down payment is required by the company, then the buyer will have an initial cash out of ₱200,000; that is,
0.20 × 1,000,000 = 200,000. The remaining ₱800,000 will be amortized monthly and the amount of monthly amortization depends on the
number of years the buyer will want to pay the loan. Normally, buyers prefer a 3-year or 5-year payment period. The lesser the number of
years, the lesser the total amount paid as interest to the loan. But with this arrangement, the monthly amortization will be considerably higher
than when one chooses to pay the balance for longer number of years.

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GROSS BALANCE
This refers to the total amount of money a bank has on deposit before adjusting for uncleared checks or deposits, as well as reserve
requirements. That is, the book balance is a measure of what the bank has on hand before adding or subtracting regulatory obligations and
items that will soon appear on its books. This is the term used by banks to describe the amount of money available before any adjustments is
made for deposits in transit, checks that have not been cleared, and reserve requirements and interest received from “float funds”.
Example:
A simple case of gross balance refers to what is readily available for you to use based on your bank deposits. For example, a check amounting
to Php5,000 that has been deposited today may not be withdrawn the next day because it has not cleared yet. If your bank passbook currently
contains ₱30,000, you may not be able to withdraw the whole amount yet because your gross balance is only ₱25,000 since your check has
not been cleared yet.
CURRENT INCREASED BALANCE

This refers to the total amount you have to pay that includes penalties or interest incurred by unpaid balance from a loan or payment you are
supposed to have made but was not able to do so on time.
Example:
As of this month’s cut-off date, the current total amount due from your purchases using your credit card is ₱99,386.59. The minimum required
payment is 5% of the total amount due. If you pay only the minimum required payment, a financing charge of 3.4% of the remaining balance will
be charged to the next bill. Assuming you refrain from using your credit card on any of your purchases for the next 3 months and the financing
charge of 3.4% is applied every billing period, show your expected monthly bill for the next 3 months.
Solution:
Given the current bill of ₱99,386.59, the minimum required payment is 0.05(99,386.59) = ₱4,969.33. If only the minimum required payment is
paid, then the remaining debt balance is 99,386.59 – 4,969.33 = ₱94,417.26. Assuming there is no credit bill transactions for the next 3 months
and the only minimum required payment each month is paid, the table below shows the monthly total amount due for each of the next 3
months.

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D. Analysis
Directions: Solve for what is being asked on each of the given problem Show your complete solution.
1. If a car selling company asked for ₱240,000 as down payment for a ₱1.2 million worth car, how many percent was the down payment?
2. Ryan is a broker who earns commission of 3 12% on all securities sales that he makes. For the past year, he closed sales totaling ₱928,867.
Find the amount of commission he earned for the year
3. Dan is a sales representative receiving an annual salary of ₱120,000 plus commission on all his sales above quota of ₱25,000 in
accordance with the following schedule:
E. Abstraction/Generalization

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Directions: Search for the words that are related to commissions and interests in the given puzzle below. Each word corresponds to 2 points.
Good luck and enjoy!
F. Evaluation
Activity 1. TRUE/ FALSE.

Directions: Read each statement below carefully. Write “T” if the statements
are true, and “F” if the statements are false. Write
your answers in a separate sheet of paper.
1. If an employee only receives a percentage of the sales made with no additional compensation given then, he is receiving a straight
commission.
2. If an employee receives a guaranteed base salary amount and earn an undefined amount of commission based on the amount of sales he
makes, then he is receiving a graduated commission.

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3. Salary plus commission is earned as a percentage of sales that as volume of sales increases, the amount of commission also increases.
4. The price of a house for sale is ₱5,000,000. The bank requires 15% down payment. If a buyer wants to buy the house, then he needs to pay
₱1,125,000 as down payment.
5. A car is valued at ₱2,000,000 and the required down payment is ₱500,000. The down payment in percentage form is 25%.
6. A salesperson is receiving a commission of 12% on all of his sales. If he was able sell goods amounting to ₱50,000, his total commission is
₱6,000?
7. A salesperson is paid in installment basis. Assuming that he was able to sell a total cost of ₱320,000 which will be paid in installments of
₱5,000 monthly with a commission of 5%. At the end of the payment term, he will be able to receive a total commission of ₱14,000.
8. Charlie is a sales engineer receiving a basic monthly compensation of ₱13,500 and 1% commission on all sales. He will receive ₱14,745.8
gross earnings for the month if he will be able to sell ₱124,580.
9. A golden bejeweled necklace was sold at ₱650,000 and will be paid in monthly installments of ₱65,000. If the salesperson gets a 3%
monthly commission, then he will receive ₱1,950.
10. Hazel receives 20% commission on the appliances she sells. If she sells a water heater for ₱1,500, a flat iron for ₱1,200 and a refrigerator
for ₱20,000, then she’ll receive ₱5,450 as a commission.
G. Assignment: Answer the remaining activities in your module.
Prepared by: Checked by:

JEWEL JOY R. PUDA RINANTE O. CASIQUIN
Special Science Teacher I Master Teacher I
Noted:
MARIELA N. CALIMA, Ed. D.
Principal IV
Region I


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SEMI-DETAILED LESSON PLAN IN Business Mathematics

B. Presentation of the lesson

Address: Balingasay, Bolinao, Pangasinan

Address: Balingasay, Bolinao, Pangasinan

Cash vs. Installment

Address: Balingasay, Bolinao, Pangasinan

Address: Balingasay, Bolinao, Pangasinan

CURRENT INCREASED BALANCE

Address: Balingasay, Bolinao, Pangasinan

Address: Balingasay, Bolinao, Pangasinan

Activity 1. TRUE/ FALSE.

Address: Balingasay, Bolinao, Pangasinan

G. Assignment: Answer the remaining activities in your module.

Prepared by: Checked by:

Address: Balingasay, Bolinao, Pangasinan

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