# Commissions, Royalties, & Piecework Pay

## Presentation on theme: "Commissions, Royalties, & Piecework Pay"— Presentation transcript:

Commissions, Royalties, & Piecework Pay
Section 6-3

Pay Plans Last week, we covered:
Annual Salary – paid by the year Hourly Pay – paid by the hour What other types of pay plans are there? Commission Paid according to money from sales Royalty Paid according to money from sales (you are not seller) Piecework Pay Paid according to units produced

Commission Some jobs that get paid commission: Real Estate Agent
Salesmen for department stores TV – Sales Any type of sales job

Royalties Some jobs that pay royalties Author Movie Director
Actor/Actress Musician

Piecework Pay Jobs that have piecework pay plans: Newspaper delivery
Field workers (pick corn, strawberries, etc) Factory workers

As an employee, what are the advantages of being paid commission or piecework? What are the disadvantages? As an employer, what are the advantages of being paid commission or piecework?

Calculating Commission
Huey Gaines is paid a straight commission of 6% on his sales. During February, his sales were \$38,000. What was his commission? Find his commission rate: Convert the percent to a decimal: Multiply the decimal by the amount of sales: 6% 0.06 0.06 x 38,000 = \$2,280

Calculating Commission
Melvin’s sales last month of a new tile cleaner were \$9,500. If he receives a commission rate of 15% of all sales, what commission did he earn? Find his commission rate: Convert the percent to a decimal: Multiply the decimal by the amount of sales: 15% 0.15 0.15 x 9,500 = \$1,425

Calculating Commission
Jacqueline earned 15% commission on her monthly sales of \$2,870, \$3,150, and \$3,940. What was her total commission for all three months. First Month: Second Month: Third Month: 0.15 x 2,870 = \$430.50 0.15 x 3,150 = \$472.50 0.15 x 3,940 = \$591 Total Commission: = \$1,494

Calculating Commission
Liz receives a weekly salary of \$200, plus 3% commission on her sales. Last week, she sold \$29,700 of computer equipment. How much did she earn? Earnings = Commission + weekly Salary Commission = Weekly Salary = Earnings = 0.03 x 29,700 = \$891 = \$200 = \$891 + \$200 = \$1,091.00