Commission

Front

What is commission?

Back

Commission is a payment made to an employee based on the sales they generate, typically calculated as a percentage of the sales amount.

Front

How do you calculate total pay with a base salary and commission?

Back

Total pay = Base salary + (Commission rate × Sales amount).

Front

If a salesperson earns a base salary of $200 and a commission of 10% on sales, how much do they earn if they sell $1,000 worth of items?

Back

Total pay = $200 + (10% × $1,000) = $200 + $100 = $300.

Front

What is a base salary?

Back

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

Front

If a salesperson has a base salary of $1,500 and earns a 5% commission on $10,000 in sales, what is their total pay?

Back

Total pay = $1,500 + (5% × $10,000) = $1,500 + $500 = $2,000.

Front

What is the difference between a fixed salary and a commission-based salary?

Back

A fixed salary is a set amount paid regularly, while a commission-based salary varies based on sales performance.

Front

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

Back

Commission earned = 15% × $2,000 = $300.

Front

What happens to commission if a salesperson does not meet their sales goal?

Back

If a salesperson does not meet their sales goal, they may earn a lower commission rate or no commission at all, depending on their company's policy.

Front

How do you convert a percentage to a decimal for commission calculations?

Back

To convert a percentage to a decimal, divide by 100. For example, 14% becomes 0.14.

Front

If a salesperson earns a base salary of $1,000 and a commission of 8% on $5,000 in sales, what is their total pay?

Back

Total pay = $1,000 + (8% × $5,000) = $1,000 + $400 = $1,400.