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 a sales commission?

Back

To calculate a sales commission, multiply the total sales amount by the commission rate (as a decimal).

Front

If a salesperson sells an item for $500 with a 10% commission rate, what is their commission?

Back

$50

Front

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

Back

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

Front

How do you find the total salary of a salesperson who earns a fixed salary plus commission?

Back

Add the fixed salary to the commission earned from sales.

Front

If a realtor earns a base salary of $30,000 and sells $1,000,000 worth of property at a 4% commission, what is their total income?

Back

$70,000 (Base salary $30,000 + Commission $40,000)

Front

What is a commission rate?

Back

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

Front

If Sharon sold $50,000 worth of items at a 15% commission rate, how much commission did she earn?

Back

$7,500

Front

What is gross income?

Back

Gross income is the total income earned before any deductions, such as taxes or expenses.

Front

If a salesperson has a total sales of $20,000 and a commission rate of 8%, what is their commission?

Back

$1,600