Lesson 2-6

Commission and Fees

I Can... use proportional relationships to find the amount of What Vocabulary
commission earned on sales and the amount of fees for certain Will You Learn?
services. commission
fee

Learn Commission and Fees

The following are four ways in which people are paid.

These employees are paid a set amount each hour,

Hourly
such as $15 per hour.
These employees are paid a set amount, no matter
Salary how many hours they work, such as $45,000 per
year.
Commission These employees are paid only a percent of the
Only amount that they sell.
Salary plus These employees are paid a small base salary, plus
Commission a percent of the amount that they sell.

Some employees, such as realtors, car salesmen, and stockbrokers,

are paid a percent of the amount that they sell. This payment is called
a commission.
If you pay a commission to a person or business, you are paying a
fee. A fee is a payment for a service. It can be a fixed amount, a
percent of the charge, or both.
A realtor may earn 5% commission on the sale of a home. Suppose
the realtor sells a house for $140,000. You can use equivalent ratios,
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and the percentage written as a rate per 100, to determine the

amount of commission. Let c represent the amount of commission.

amount of commission c
_______ 5
​​ 
140,000 ​​ = ___
​​   ​​
100 Percent
price of house

× 1,400

Because 100 × 1,400 is

7,000
_______ 5
​​ 
140,000  ​​ = ___
​​ 
100  ​​ 140,000, multiply 5 by
1,400 to find c.

× 1,400

The amount of commission is $7,000. This means the real estate

agent will be paid $7,000 for selling a $140,000 home.

Lesson 2-6 • Commission and Fees 107

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 Your Notes
Example 1 Find Commission
Angie works in a jewelry store and earns a 6.25% commission on
every piece of jewelry she sells.
How much commission does she earn for selling a ring that costs
$1,300?
Think About It!
What is a good Method 1 Use ratio reasoning.
estimate for the
solution? Explain how Write a proportion and solve using ratio reasoning. Let c represent
you calculated the the amount of commission.
estimate.
amount of commission c
_____ 6.25
Sample answer: $65; cost of ring ​​ 
1,300  ​​ = ____
​​   ​​
100
Percent
6.25% is close to 5%;
5% is half of 10% and × 13
10% of $1,300 is
$130; half of $130 c
_____ 6.25 Because 100 × 13 = 1,300,
​​ 
1,300  ​​ = ____
​​   ​​
100 multiply 6.25 by 13 to find the
is $65.
value of c.
× 13

6.25 × 13 = 81.25,
​​  81.25 ​​​​ = ____
_____
1,300 ​​ 
6.25
100  ​​ so, c = 81.25.

Method 2 Use properties of operations.

_____ c 6.25
​​  1,300 ​​ = ____
​​  100 ​​ W
 rite the proportion. Let c
represent the amount.
c
_____
​​ 
1,300  ​​ = 0.0625 D
 ivide 6.25 by 100. A one-step
Talk About It! equation results.
How does your answer c
1,300 •​​(_____
​  1,300 ​)​​ = (​​ 0.0625)​​ • 1,300 Multiplication Property of Equality
compare to your
estimate? c = 81.25 Simplify.

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Sample answer: My
estimate was $65
(5% of $1,300), which
is close to the actual
amount of $81.25.
So, using either method, the amount of commission is $81.25.
Check
Nathan sells jewelry and earns a 9.75% commission on every piece
he sells. How much commission would he earn on a bracelet that
sold for $220? Use any strategy.

Show
your work
here $21.45

Go Online You can complete an Extra Example online.

108 Module 2 • Solve Percent Problems

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 Example 2 Find the Amount of Sales
Caleb needs to earn $1,200 each month to cover his living expenses. Think About It!
He earns an 8% commission on everything he sells.
Do you need to find
What is the minimum amount he needs to sell in order to earn the part, the percent,
$1,200? or the whole?

Write a proportion. Then solve using ratio reasoning. Let a represent whole
the amount he needs to sell.

amount of commission 1,200

____ 8
amount of sales ​​  a ​= ___
​ ​100 ​​ Percent

× 150

1,200
____ 8 Because 8 × 150 = 1,200, multiply
​​  a ​= ___
​ ​100 ​​ 100 by 150 to find the value of a.

× 150
1,200
_____ 8
​​ 
15,000 ​​ = ___
​ ​100 ​​ 100 × 150 = 15,000,
so, a = 15,000.

So, Caleb needs to sell $15,000 to earn $1,200 in commission.

Talk About It!
How do you know
Check your answer is
Quentin wants to earn at least $945 this month in commission. What reasonable?
is the minimum amount he needs to sell if he earns a 5.25%
commission? $18,000 Sample answer: 8%
is close to 10%.
Show
your work Because 10% of
here
$15,000 is $1,500,
Go Online You can complete an Extra Example online.
which is close to
$1,200, my answer is
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reasonable.

Pause and Reflect

Did you make any errors when completing the Check exercise? What
can you do to make sure you don’t repeat the errors in the future?

Record your See students’ observations.

observations
here

Lesson 2-6 • Commission and Fees 109

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Think About It!
What is a good
estimate for an 8%
shipping fee? Explain
how you calculated the
estimate.
Sample answer:
$8.55; 8% is close to
10%; 10% of $85.50 is
$8.55
Talk About It!
How can you solve the
problem another way?
Sample answer:
Instead of setting up
the proportion, you can
multiply the amount of
the purchase by the
percent written as a
decimal.
110 Module 2 • Solve Percent Problems
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Example 3 Fees
Sybrina bought some paper supplies from an online retailer. The
retailer charges a $6.95 shipping fee or 8% of the total purchase,
whichever is greater.
If Sybrina's total purchase is $85.50, how much shipping will
she pay?
Step 1 Find the percent of the total purchase.
Because the shipping fee may be 8% of the total purchase, find 8% of
$85.50.
Write a proportion and solve using the properties of operations.
Let x represent the potential shipping fee.
x
_____ 8
​​   ​​ = ___
​​ 
85.50 100  ​​ Write the proportion.
_____ x
​​  85.50 ​​ = 0.08 Divide 8 by 100.
x
85.50 • ( ​  85.50 ​)​​ = (​​ 0.08)​​ • 85.50 Multiplication Property of Equality
​​ _____
x = 6.84 Simplify.
Step 2 Compare the two fees.
The 8% shipping fee of $6.84 is less than the $6.95 shipping fee.
Sybrina must pay the greater amount.
So, Sybrina will pay $6.95 in shipping fees.
Check
Tickets for a concert are sold by online ticket resellers. One company
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charges a fee of 4% of the ticket price. Another company charges a
flat fee of $2.50. The ticket you want to buy costs $60.50. If you buy
the ticket online, which is the lesser fee?
Show
your work
here $2.42
Go Online You can complete an Extra Example online.
 Apply Personal Finance Help wanted
David is starting a new job in sales. He can choose to earn only a 10%
commission on sales each month, or earn a monthly base salary of Now
hiring!
$1,500 with a 3% commission on sales over $7,500. Which pay
method would earn him more money if he has an average sales of
$16,000 each month?

1 What is the task?

Make sure you understand exactly what question to answer or
problem to solve. You may want to read the problem three times.
Discuss these questions with a partner.

First Time Describe the context of the problem, in your own words.
Second Time What mathematics do you see in the problem?
Third Time What are you wondering about?

2 How can you approach the task? What strategies can you
use?
Record your
observations
here

See students’ strategies. Talk About It!

How do you determine
a 3% commission on
3 What is your solution?
sales over $7,500?
Use your strategy to solve the problem.
Show Sample answer: You
your work
here first need to subtract
$7,500 from the
base salary with commission; See students’ work.
amount of actual
sales, and then find
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3% of the difference.

4 How can you show your solution is reasonable?

Write About It! Write an argument that can be used to defend
your solution.
See students’ arguments.

Lesson 2-6 • Commission and Fees 111

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 Check
Kelly has a job in sales that pays only a commission of 24% of her
total monthly sales. She is offered a new job with a monthly salary of
$3,750 with a commission of 9.5% on her total monthly sales over
$12,500. If she estimates her total monthly sales will average
$20,000, which statement is correct?

A The new job will pay more because she would earn $4,462.50,
and her current job only pays $4,220.
B The new job will pay more because she would earn $4,742.75,
and her current job only pays $4,220.
C Her current job will pay more because she will earn $4,800, and
the new job would only pay $4,462.50.
D Her current job will pay more because she will earn $4,800, and
the new job would only pay $4,742.75.

Show
your work
here

Go Online You can complete an Extra Example online.

Pause and Reflect

How are parts and wholes represented in fees and commissions?
Give examples to support your answer.

Record your See students’ observations.

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observations
here

112 Module 2 • Solve Percent Problems

THIS MATERIAL IS PROVIDED FOR INDIVIDUAL EDUCATIONAL PURPOSES ONLY AND MAY NOT BE DOWNLOADED, REPRODUCED, OR FURTHER DISTRIBUTED.