1. SECTION 1-7 pp
Graduated Commission

2. Section Objective
Compute:
Total graduated commission

3. Key Words to Know graduated commission (p. 106)
Pay in which the commission rate is different for different levels of sales.

4. Formula Total Graduated = Sum of Commissions
Commission for All Levels of Sales

5. The Road to Building Castles p. 106
Describe the kind of personality a salesperson has. How does this influence his or her sales?

6. Example 1
Irene Gomaz sells appliances at Twin City Sales. She receives a graduated commission as shown:
4% First $1,000
6% Next $2,000
8% Over $3,000

7. Example 1 (cont.) Gomaz’s sales for the past month totaled $9,840.
What is her commission for the month?

8. Example 1 Answer
Step: Find the sum of commission for all levels of sales.
Sales × Commission Rate
First $1,000 $1,000 × 4% = $
Next $2,000 $2, × 6% =
Over $3,000 ($9,840 – $3,000) × 8%
$6,840 × 8% =
Total Graduated Commission $707.20

9. Practice 1
Pamela Miller sells musical instruments. She earns 6½ percent commission on the first $2,000, 8 percent on the next $3,000, and 10 percent on sales over $5,000.
Find the graduated commission on $7,368.

10. Practice 1 Answer
$606.80

11. Practice 2
Bob Elliott sells lumber. He earns 9 percent commission on the first $25,000, 11 percent commission on the next $30,000, and 15 percent on sales over $55,000.
Find the graduated commission on monthly sales of $56,575.

12. Practice 2 Answer
$5,786.25

13. END OF SECTION 1-7
Graduated Commission