Commission

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).

Front

What is the commission rate?

Back

The commission rate is the percentage of sales that is paid to the salesperson as commission.

Front

Convert 5% to a decimal.

Back

.05

Front

If a salesperson sells $10,000 worth of products at a 10% commission rate, what is their commission?

Back

$1,000

Front

What is the formula for calculating commission?

Back

Commission = Total Sales Amount × Commission Rate.

Front

If a salesperson earns $300 from a sale of $3,000, what is their commission rate?

Back

10% (Commission Rate = Commission / Total Sales = $300 / $3,000).

Front

What is the difference between gross sales and net sales?

Back

Gross sales are the total sales before any deductions, while net sales are the total sales after deductions such as returns and discounts.

Front

If a salesperson has a commission rate of 8% and sells $50,000 worth of products, what is their commission?

Back

$4,000 (Commission = $50,000 × 0.08).

Front

What does it mean to change a percentage to a decimal?

Back

Changing a percentage to a decimal involves dividing the percentage by 100.