SOLVING PROBLEMS ON Determining the Salary-Plus Commission

COMMISSIOS Salary-Plus Commission is a type of

commission received by employees with a
fixed or basic salary with additional
Determining the Staright Commission
commission from sold products.
When employees are paid only on
commission – that is, their commission is
1) Andy works as a salesperson. His
already their entire pay – they are said to
employer pays him a salary of Php4,000
be working on straight commission.
per week, plus a 3% commission on his
sales. If sold items worth Php5,000 in a
1) Esther is a real estate sales agent who
certain week, how much did he totally
receives a straight commission of 5% for
received that week?
every property she sells. If she
successfully sells a house for Php5,000,000
Solution:
how much will she get paid?
First, determine the commission.
C= rxS
Solution:
C = 3% x 5,000
To determine Esther’s commission,
C = 0.03 x 5,000
use the formula C = r x S.
C = 150
C= rxS
Then, compute the total amount (SC)
C = 5% x 5,000,000
that he received by adding his weekly pay
C = 0.05 x 5,000,000
(P) and his commission (C).
C = 250,000
SC = P + C
Therefore, Esther will get Php250,000
SC = 4,000 + 150
as her straight commission.
SC = 4,150
Thus, Peter received a total of
2) For every appliance he sells, Peter
Php4,150 that week.
receives 6% straight commission. One day,
he sold a television set for Php12,000, a
2) Zai earns a monthly salary of Php20,000
refrigerator for Php17,000, and a washing
as a sales agent in a real estate firm. If she
machine for Php8,000. How much is his
gets an additional 5% commission and she
straight commission?
is able to sell a property worth
Php2,000,000 in one month, how much is
Solution:
her pay that month?
First, add the selling prices of the
appliances to get the total amount of
Solution:
Peter’s sales (S).
First, determine the commission.
S = 12,000 + 17,000 + 8,000
C= rxS
S = 37,000
C = 5% x 2,000,000
Next, compute for the commission.
C = 0.05 x 2,000,000
C= rxS
C = 100,000
C = 6% x 37,000
Then, compute the total amount (SC)
C = 0.06 x 37,000
that she received by adding his monthly
C = 2,200
pay (P) and her commission (C).
Therefore, Peter received a straight
SC = P + C
commission of Php2,200.
SC = 20,000 + 100,000
SC = 120,000
Thus, Zai received a total of
Php120,000 that month.
Determining the Graduated Commission
The percent of sales earned (that is,
commission rate) increases incrementally
as the sales amount increases is called
graduated or incremental commission.
1) Andrew works in an insurance company
that pays him agraduated commission
based on the following scale:
• 5% commission on first Php5,000 sales
• 10% commission on the next Php15,000
• 15% on sales in excess of Php20,000
What is his total commission if he closed a
deal worth Php25,000?
Solution:
To compute for his total commission,
consider his sales amount (Php25,000)
as three partitions (S1, S2, and S3)
based on the indicated amounts in the
graduated commission scale.
25,000 = 5,000 + 15,000 + 5,000
(S1) (S2) (S3)
SOLVE ANSWER THE FOLLOWING ON A ½
SHEET OF YELLOW PAD PAPER.
1) Alec works in a car company. Last
month, he sold a car worth Php1,500,000
and got a 5% commission. How much was
his commission for the month?
2) As salesperson in NRDE Mall, Anita
receives a monthly salary of Php17,000
and a 10% commission on her sales. If she
was able to sell items worth Php15,500 in a
month, how much was her commission?
How much was her total earnings during
that month?
3) In an insurance company, a
salesperson is given 2% commission on
her first Php10,000 worth of sales, 5%
commission on her next Php20,000 worth
of sales, and 10% commission on sales in
excess of Php30,000. How much is her total
pay in a month if she has a salary of
Php15,000 and a total sales of Php80,000?

Commission on 1st Sales (S1):

CS1 = r x S1
CS1 = 5% x 5,000
CS1 = 0.05 x 5,000
CS1 = 250
Commission on 2nd Sales (S2):
CS2 = r x S2
CS2 = 10% x 15,000
CS2 = 0.1 x 15,000
CS2 = 1,500
Commission on 3rd Sales (S3):
CS3 = r x S
CS3 = 15% x 5,000
CS3 = 0.15 x 5,000
CS3 = 750
Lastly, add all the three commissions.
C = CS1 + CS2 + CS3
C = 250 + 1,500 + 750
C = 2,500
Thus, Andrew’s total commission is
Php2,500.