5.3 Commissions, Royalties and Piecework Pay

_____ is a method of payment where an employee receives a percentage of the amount of sales, example real estate agent

• Salary

• Piecework

• Commission

Pay based on completion of work or number of items completed

• Commission

• Hourly Rate

• Piecework

Dan is paid straight commission of $5.75 for each item he sells. Last month he sold 103 items. How much did he make in commission?

• $515

• $575

• $592.25

Money employees or others receive based on sales, example musicians

• royalties

• commission

• gross income

A car salesperson receives a commission of 8% on all sales.  If he sold   $40,000 worth of cars in one week, find his commission.

• $320,000.00
• $5000.00
• $3200.00

A salesperson receives a commission of 6% on all sales.  If she sold $5000   worth of items in one week, find her commission.

• $3000.00
• $300.00
• $833.33

An employee who is paid monthly is paid _______ times a year.

• 12

• 24

• 6

Compute the gross pay:

Base pay: $482.10

Sales amount: $260.00

Commission rate: 9%

• $742.10

• $528.30

• $505.50

How many times a year do you receive a paycheck if you are paid biweekly?

• 52

• 26

• 24