Commission

What is a commission?
A commission is a fee paid to a person who
makes a sale.
The commission is usually a percent of the
selling price. The percent is called the
commission rate.

commission  commission rate  total

sales
 What is a commission?
A commission is a fee paid to a person who
makes a sale.
The commission is usually a percent of the
selling price. The percent is called the
commission rate.

commission  commission rate  total

sales
 What is a commission?
A commission is a fee paid to a person who
makes a sale.
The commission is usually a percent of the
selling price. The percent is called the
commission rate.

commission  commission rate  total

sales
 Example 1
Carmen Pena works in an appliance store. She
is paid a 5% commission rate on all appliances
that she sells. What is her commission on the
sale of a television set that costs $369?

commission  commission rate  total sales

5%  369
$18.45  .05 x 369 Make sure you
convert to a
decimal!
 Example 2
Suppose the commission rate is 8%. Find the
commission on a $675 refrigerator.

commission  commission rate  total sales

8%  675
$54  .08 x 675 Make sure you
convert to a
decimal!
 Try This!
commission rate: 5% Commission x Sales
total sales: $200 5% x 200
commission: __________ .05 x 200 = 10

commission rate: 6% Commission x Sales

total sales: $1,500 6% x 1500
commission: __________ .06 x 1500 = 90
Other salespeople are paid a commission plus a
regular salary. Their total pay is a percent of
the sales they make plus a salary.

total pay  commission + salary

 Example 3
Josh earns a weekly salary of $300 and a 6%
commission on his sales. Last week his sales
totaled $3,500. What was his total pay?
Think: total pay, t  commission rate  total sales  salary

6%  3500  300
Make sure you
convert to a
decimal! = .06  3500 + 300
= 210 + 300
total pay, t = 510
 Try This!
Commission rate: 3%
Total sales: $1800
Salary: $250
Total Pay: __________
Commission rate: 2%
Total sales: $25,000
Salary: $400
Total Pay: __________
Commission x Sales
3% x 1800
.03 x 1800 = 54
54 + 250 = $304
Commission x Sales
2% x 25000
.02 x 25000 = 500
500 + 400 = $900
 Finding the Commission Rate
The commission on the sale of a $1,150 video
camera is $69. What was the commission
rate?
What percent of 1150 is 69? Remember!! is
Let r  commission rate. of
69 .06
 1150 69.00
1150
Make sure you
Commission Rate = 6% convert to a
percent!
 Try This!
Total sales: $5000 Commission / Sales
Commission Rate:______ 250 / 5000
Commission: $250 25 / 500 = 1/20 = 5%

Total sales: $2800 Commission / Sales

Commission Rate:______ 700 / 2800
Commission: $700 7 / 28 = ¼ = 25%
 Finding the Selling Price
The commission rate is 3% and the commission
on the software sale is $18. What is the selling
price?

3 % of what number is 18? % is

Remember!! =
100 of
3 18
=
100 x 3x = 1800
x = 600 The selling price
is $600
 Try This!

Total sales:________
Commission Rate: 4% 4 50 4x = 5000
=
100 x x = 1250
Commission: $50

Total sales:________
Commission Rate: 5% 5 400 5x = 40000
100 = x x = 8000
Commission: $400