is a fee paid to person who makes

a sale. The commission

is usually a percent of the
selling price. The percent is
called the
__________________. There are
3 type of commission. These
are
____________________________
____________.
______________ is a type of
commission where a person is
paid a percentage of
his/her sales only.
_______________ is a type of
commission where a person gets
paid a salary and a percentage of
his/her sales. And lastly,
___________________
is a type of commission where
the percentage changes based on
how much
someone sells.
WRAP UP! Supply the necessary
answers to complete the statements
about
commissions. Write your answers
on your notebook.
WRAP UP! Supply the necessary answers to complete the statements about
commissions. Write your answers on your notebook.

____________________ is a fee paid to person who makes a sale. The commission

is usually a percent of the selling price. The percent is called the

__________________. There are 3 type of commission. These are

________________________________________.

______________ is a type of commission where a person is paid a percentage of

his/her sales only. _______________ is a type of commission where a person gets

paid a salary and a percentage of his/her sales. And lastly, ___________________

is a type of commission where the percentage changes based on how much

someone sells.

Commission is a fee paid to person who makes a sale. The commission is usually a
percent of the selling price. The percent is called the Commission Rate

There are 3 different types of commission. These are:

1. Straight Commission

2. Salary Plus Commission

3. Graduated Commission

Straight Commission
It is a type of commission where a person is paid a percentage of his/her sales
only.
Let us take a look at this example:

Example:

Karyl works on a “commission only” basis and receives 3% on her monthly sales

without a base salary. What is her commission and total pay during a month when

she sells ₱108,000 worth of appliance, compute for the commission.

Solution: The commission will be 3% of ₱108,000.

And that is, ₱108,000(0.03) = ₱3,240

Salary plus Commission

It is a type of commission where a person gets paid a salary and a percentage of
his/her sales.
Let us take a look at this example:

Example:

Mr. Cueva decides to work for ABX Company that will pay him ₱3,500 per week

and 6% of any sales above ₱3,000. If he sold goods worth ₱5,000, what is his gross

pay?

Solution: ₱5,000 – ₱3,000 = ₱2,000

 His commission will be 6% of ₱2,000 and that is: (₱2,000)(0.06)

Commission = ₱120

His gross pay is computed as ₱3,500 + ₱120 = ₱3,620

Graduated Commission
It is a type of commission where the percentage changes based on how much
someone sells.
Most of the companies encourage their agents to sell more goods.
Let us take a look at this example:

Example:

Mary has a monthly commission plan where she receives 2.5% on the first

₱100,000 of sales during the month and 3.5% on the sales above ₱100,000. If her

total sales during the month is ₱150,000, compute her commission.

Solution: 150,000 – 100,000 = ₱50,000

SALES AMOUNT COMMISSION RATE COMMISSION

₱100,000 0.025 2,500

₱50,000 0.035 1,750

TOTAL COMMISSION ₱4,250