Understanding Commission and Income

What is a commission?

• A fixed salary

• A fee that is a percentage of a business transaction

• A bonus for attendance

• A penalty for late work

Tags

CCSS.6.RP.A.3C

Who typically earns a commission?

• Office clerks

• Sales representatives

• Factory workers

• IT professionals

Tags

CCSS.L.1.6

CCSS.L.3.6

CCSS.L.4.6

CCSS.L.K.5A

What is the formula for calculating commission?

• item price + number of items + commission rate

• item price - number of items - commission rate

• item price x number of items x commission rate

• item price / number of items / commission rate

Tags

CCSS.6.RP.A.3B

What is earned income?

• Income from investments

• Income from gifts

• Income from work

• Income from renting property

Which of the following is an example of unearned income?

• Wages

• Commissions

• Tips

• Earnings from investments

What is the purpose of adding a commission to a salary?

• To cover basic expenses

• To reward productivity

• To reduce taxes

• To increase working hours

What is the formula for total income?

• earned income - unearned income

• earned income x unearned income

• earned income + unearned income

• earned income / unearned income

Tags

CCSS.6.NS.B.3

What is an example of earned income?

• Rental income

• Dividends

• Wages

• Interest

What type of income do tips represent?

• Unearned income

• Earned income

• Passive income

• Investment income

What is the commission rate if it is expressed as 0.12 in decimal form?

• 1.2%

• 12%

• 0.12%

• 120%