Commission Practice

Front

What is commission?

Back

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

Front

What is a percentage?

Back

A percentage is a way of expressing a number as a fraction of 100. It is often used to compare relative sizes or amounts.

Front

How do you convert a fraction to a percentage?

Back

To convert a fraction to a percentage, divide the numerator by the denominator and then multiply by 100. For example, 1/4 = 0.25 x 100 = 25%.

Front

If a salesperson sells an item for $200 with a 15% commission, how much do they earn?

Back

The commission earned is $200 x 0.15 = $30.

Front

What is a base salary?

Back

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

Front

How do you calculate total pay including commission?

Back

To calculate total pay, add the base salary to the commission earned. For example, if the base salary is $150 and the commission is $30, total pay is $150 + $30 = $180.

Front

What is the formula for calculating percentage grade?

Back

Percentage grade = (Points earned / Total possible points) x 100.

Front

If a carpet salesman sells 5,000 yards of carpet at $3 per yard with a 16% commission, how much commission does he earn?

Back

Total sales = 5,000 yards x $3 = $15,000. Commission = $15,000 x 0.16 = $2,400.

Front

What is the commission rate if a salesperson earns $500 on $5,000 in sales?

Back

Commission rate = (Commission earned / Total sales) x 100 = ($500 / $5,000) x 100 = 10%.