Commission

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for transacting a piece of business or performing a service, typically calculated as a percentage of the sales made.

Front

How do you calculate total pay when commission is involved?

Back

Total pay = Salary + Commission.

Front

If a salesperson earns a 5% commission on sales and sells $2000 worth of products, how much commission do they earn?

Back

Commission = 5% of $2000 = $100.

Front

What is the formula to find the total dollar value of sales based on commission earned?

Back

Total Sales = Commission Earned / Commission Rate.

Front

If a salesperson earns $1500 in commission at a rate of 10%, what is the total sales amount?

Back

Total Sales = $1500 / 0.10 = $15,000.

Front

What is the commission rate if a salesperson earns $200 on $4000 in sales?

Back

Commission Rate = (Commission Earned / Total Sales) x 100 = ($200 / $4000) x 100 = 5%.

Front

If a person has a base salary of $300 and earns a 7% commission on $5000 in sales, what is their total pay?

Back

Total Pay = Salary + Commission = $300 + (7% of $5000) = $300 + $350 = $650.

Front

What does it mean if a salesperson has a commission rate of 25%?

Back

It means the salesperson earns 25 cents for every dollar of sales they make.

Front

How do you find the commission earned if you know the total sales and commission rate?

Back

Commission Earned = Total Sales x Commission Rate.

Front

If a salesperson sells $10,000 worth of merchandise and earns $1,200 in commission, what is their commission rate?

Back

Commission Rate = (Commission Earned / Total Sales) x 100 = ($1,200 / $10,000) x 100 = 12%.