1 / 7

Ch.1.3 Do More, Make More: Commissions and Payments By Item

Ch.1.3 Do More, Make More: Commissions and Payments By Item. Determine how much a salesperson earns when his or her pay is based on a commission, price rate Understand that the earnings of a person who works on commission can vary from month to month. Earning Commissions:.

Download Presentation

Ch.1.3 Do More, Make More: Commissions and Payments By Item

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Ch.1.3 Do More, Make More: Commissions and Payments By Item Determine how much a salesperson earns when his or her pay is based on a commission, price rate Understand that the earnings of a person who works on commission can vary from month to month

  2. Earning Commissions: • Commission – income that is earned as a part of a total number of sales Ex. Jason, who works at a used-car lot, earns a 15% commission on every car he sells. Today, Jason sold a car for $6,000. Calculate the commission Jason will get from this sale. C = 6000(0.15) = 900

  3. Calculate the Commission: • A Realtor earns a 3% commission on every home he/she sells. Say that the Realtor sells a $400,000 home. What is the Realtor’s commission? • A car salesperson sold 2 cars this month. The total amount of sales was $56,000. What is the car salesperson commission for that month if his commission is 7%?

  4. Base Salary: • The salary one earns before commission. This amount is automatic, even if one does not sell any items.

  5. Piece Rate: • Instead of receiving a salary for working a certain amount of time, some people are paid a piece rate, or item rate for the number of items that the produce or sell. If you work fast or work on your own schedule, being paid a piece rate may be advantageous to you .

  6. Commission Formula • C = prn where p = price of one item r = commission rate n = # of items sold Ex. Betty sales appliances at a department store. She receives a 7% commission on each item which sell for $12.95 each. What would her commission be for selling 32 appliances in two weeks?

  7. How many appliances does Betty need to sell in order for her to earn at least $50 on commission?

More Related