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 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 10%, the commission is $1000 x 0.10 = $100.

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 $5000 worth of products at a 5% commission rate, what is their commission?

Back

$250

Front

What is the total earnings of a salesperson who has a fixed salary of $3000 and earns a 4% commission on $20,000 in sales?

Back

$3,800

Front

If a real estate agent earns a 3% commission on a $250,000 home sale, how much do they earn?

Back

$7,500

Front

What is the difference between fixed salary and commission?

Back

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

Front

How do you find the total sales from a known commission and commission rate?

Back

To find total sales, divide the commission earned by the commission rate (as a decimal). For example, if the commission is $200 and the rate is 10%, total sales = $200 / 0.10 = $2000.

Front

What is a tiered commission structure?

Back

A tiered commission structure is a system where the commission rate increases as sales volume increases, incentivizing higher sales.

Front

If a salesperson earns $1,200 in commission at a 15% rate, what were their total sales?

Back

$8,000