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Commission

Commision a lesson for Grade 6

Rodel5
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Commission

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  1. COMMISSION COMMISSION is a form of compensation frequently employed in sales, where salespeople earn a percentage of the sales they generate.

  2. COMMISSION Different types of professions work on commission: • A sales man working at a retail store. • A realtor can make commission on selling houses. • A car sales man. Note: The more the sales person sells the higher commission they will make.

  3. COMMISSION • STRAIGHT COMMISSION, also known as PURE COMMISSION, is a compensation structure where salespeople are only paid based on the sales they generate. • There is no fixed salary or base pay. • Their earnings depend entirely on the value or volume of the products or services they sell.

  4. COMMISSION Commission = Quantity Sold x Rate of Commission or Commission = Amount Sold x Rate of Commission Rate of Commission =

  5. COMMISSION Solution: Commission = Quantity Sold x Rate of Commission = 200 x 5 = P1 000

  6. COMMISSION TRY THIS! Leon sells perfume and is paid a straight commission of P25 on each bottle he sells. What is his commission if he sold P50 bottles last month?

  7. COMMISSION Solution: Carmella’s commission is 15% of the total sales. Commission = Amount Sold x Rate of Commission = 210 000 x 0.15 = P31 500.00

  8. COMMISSION TRY THIS! Liza is paid a straight commission of 25% on her class? Last month, her total sale were P300 000. What was her commission?

  9. SALARY and COMMISSION Salespeople may be paid a salary plus a commission. The commission may be a percent of the total sales or a percent of the sales above a fixed amount called QUOTA.

  10. SALARY & COMMISSION Solution: Total Sales = P7 500 000 Quota = P5 000 000 Sales over Quota = P2 500 000 Commission = 3% of P2 500 000 = 0.03 x 2 500 000 = P75 000

  11. SALARY & COMMISSION Solution: TOTAL INCOME = Salary + Commission = P15 000 + P75 000 = P90 000

  12. SALARY & COMMISSION TRY THIS! Alyssa is paid a salary of P30 000 a month plus 5% on sales above P4 000 000. Last month, her sales were P7 500 000. What was her total income for the month?

  13. GRADUATEDCOMMISSION GRADUATED COMMISSION refers to a compensation structure in which the rate of commissions earned by salespeople increases as their sales increase. As the sales increase, the commission percentage also increases, providing an incentive for greater sales success.

  14. GRADUATED COMMISSION Solution: Sales over P100 000 = P180 000 – P100 000 = P80 000 Commission on the first P100 000 = 5% of P100 000 = 0.05 x 100 000 = P5 000 Commission on sales above P100 000 = 10% of P80 000 = 0.1 x 8 000 = P8 000 TOTAL COMMISSION = 5 000 + 8000 = 13 000

  15. GRADUATED COMMISSION TRY THIS! Irish is paid a 4% commission on the first P50 000 of her weekly sales and 5% on all sales over P50 000. Last week, her sales were P200 000. What was Irish’s commission?

  16. RATE COMMISSION

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