Mastering Percent Problems with Commission

Mastering Problems with Commission

Reyland O. Dumlao, M.A.T.
Mathematics

Calculating Commission Amount

• Commission is a percentage of a sale that is earned by a salesperson

• To calculate the commission amount, multiply the sales amount by the commission rate

• Commission = Sales Amount * Commission Rate

Multiple Choice

What is commission?

• A percentage of a sale earned by a salesperson

• The total sales amount

• The profit made by the salesperson

• The salary of the salesperson

Commission:

A percentage of a sale earned by a salesperson. It is not the total sales amount, profit made, or salary of the salesperson. Commission motivates salespeople to maximize their efforts and drive sales. It is a performance-based incentive that rewards their contribution to the company's revenue. Commission-based compensation is common in industries like real estate, retail, and insurance.

Read and Solve the problem

Answer in your notebook with a solution.

Open Ended

1. Joshua’s sales commission rate is 6%. What is the commission from the sale of Php650,750 worth of new car sales?

Open Ended

2. The Garcia’s family's house was sold for 2,300,000. How much money will they have after they pay their real estate agent a 5% commission?

Open Ended

3. A stock broker receives a commission of 11% for selling annuities to her clients. If she sells Php50,000 in annuities, how much commission will she earn?

Open Ended

4. The Jones family purchases Php350,000 in life insurance from an insurance broker. How much will they pay the insurance broker if she charges a 0.5% commission?

Open Ended

5. A car salesman earns a 3% commission on sales. If he sells a car for Php827,990, how much commission will he earn?