What is Commission? It’s usually given as a percent. Sometimes, it is the only pay a sales person earns!

Common Commission Jobs &Their Rates Real estate agent – 3% to 6% of the final sale Car Salesman – 25% on the profit Retail Sales (handbags, beauty) – 3% to 5% Retail Sales (shoes, appliance, electronics) – 8% to 10% Furniture Sales – 2% to 6% Insurance Agents – varies widely

How Do We Calculate Commission? Commission = Amount of Sales x Rate of Commission

Straight Commission Example An insurance agent earns a 7.5% commission on her sales. If she sell a $ policy, how much does she earn?

Salary & Commission Example Francine works at Best Buy and earns $9.50 an hour and a 4% commission on all sales. Last week she worked 23 hours and her sales totaled $ Find her weekly pay.

Try a Straight Commission Problem Stella works as a salesperson in a jewelry store. She is paid an 12% commission on her sales. One very busy day she made the following 4 sales; A ladies watch: $ A diamond necklace: $ A pair of cufflinks: $125 A gold bracelet: $ What was Stella's commission on her total sales?

Solution

Try a Commission & Salary Problem Jenna works at the Shoe Department in Macy’s. She earns $8.70 an hour and a 8.5% commission on her sales. If Jenna worked 19 hours and sold $ worth of shoes, how much does she earn in all for the week?

Solution