COMMISSION AND FEES

Front

What is a commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the sales are $1000 and the commission rate is 5%, the commission is $1000 x 0.05 = $50.

Front

What is a commission rate?

Back

The commission rate is the percentage of sales that an employee earns as commission. It varies by job and industry.

Front

If a salesperson sells $500 worth of products at a 10% commission rate, how much commission do they earn?

Back

$50

Front

What is the difference between gross income and net income?

Back

Gross income is the total earnings before any deductions (like taxes or commissions), while net income is what remains after all deductions.

Front

If a realtor has a base salary of $30,000 and earns a 3% commission on $1,000,000 in sales, what is her total income?

Back

Total income = Base salary + Commission = $30,000 + ($1,000,000 x 0.03) = $30,000 + $30,000 = $60,000.

Front

What is the formula for calculating total earnings including commission?

Back

Total Earnings = Base Salary + (Total Sales x Commission Rate)

Front

If a salesperson earns $200 in commission from $4,000 in sales, what is their commission rate?

Back

Commission Rate = (Commission / Total Sales) x 100 = ($200 / $4,000) x 100 = 5%.

Front

What is a base salary?

Back

A base salary is a fixed amount of money paid to an employee, not including any bonuses or commissions.

Front

If a salesperson earns a 15% commission and sells $2,000 worth of products, how much do they earn in commission?

Back

$300