Understanding Salaries and Commissions

Front

A fixed salary is an amount of money paid regularly for work done. It does not change on a regular basis.

Back

A fixed salary is a stable income that does not fluctuate.

Front

Commission is an amount of money that a person earns for selling something. It is usually a percentage of what was sold.

Back

Commission incentivizes sales performance.

Front

In some jobs, people have a fixed salary and can earn commission in addition to their salary.

Back

This structure combines stability with performance-based pay.

Front

Michelle works at a shoe store and receives a base salary of $400 per week plus 10% commission on her sales. She made $650 in sales this week.

Back

Total payment for Michelle: $400 + 0.10 \times 650 = $400 + $65 = $465.

Front

Alex is a realtor. He receives a base salary of $3,000 per month plus 6% commission for each house he sells. In March, he sold one house for $500,000.

Back

Total payment for Alex: $3,000 + 0.06 \times 500,000 = $3,000 + $30,000 = $33,000.

Front

Michael is a car salesman. He receives commission at a rate of 25% when he sells a car. He sold a car for $20,000.

Back

Commission earned by Michael: 0.25 \times 20,000 = $5,000.

Front

Theresa sells wedding dresses. She receives 20% of the sale in commission when she sells a wedding dress. The dress is $1,800.

Back

Commission earned by Theresa: 0.20 \times 1,800 = $360.

Front

Lee-Ann sells pianos. She receives a weekly paycheck of $250 plus 30% on the pianos she sells. Last week she sold one piano for $10,000.

Back

Total earnings for Lee-Ann: $250 + 0.30 \times 10,000 = $250 + $3,000 = $3,250.

Front

Chris works at an electronics retail store. He receives a weekly paycheck of $350 plus 15% commission of any computer sales he makes. Last week he sold two laptops that were $900 each.

Back

Total earnings for Chris: $350 + 0.15 \times (2 \times 900) = $350 + $270 = $620.