1. 1 Commission Press Ctrl-A ©2009 – Not to be sold/Free to use Stage 5 Year 9

2. 2 Commission (1/4) A commission is paid as a percentage of an employees sales. A retainer is a fixed payment,to keep a salesman, irrespective of sales. Commission may be paid on a sliding scale. E.g. 5% of the first $10 000 and 2.5% of the balance. or 0% of the first $10 000 and 2.5% of the balance. End of Slide

3. 3 Commission (2/4) Example 1: Sarah earns a commission of 4% on sales of $50 000. What is her commission? Commission = 0.04  4% as a decimal (Rate of commission) x 50 000  Sales = $2 000 End of Slide

4. 4 Commission (3/4) Example 2: John earns a commission of 5% on sales up to $150 000 and 2.5% of the balance. What commission on sales of $400 000 ? Commission = 0.05 (Rate of commission) 5% as a decimal  x 150 000 Basic Sales  + 0.025  2.5% as a decimal x (400 000 – 150 000) Balance over $150 000  = $13 750 End of Slide

5. 5 Commission (4/4) Example 3: Jane is paid a retainer of $500 and earns a commission of 3% on sales over $3 000. What is her commission on sales of $5 600? Commission = 500 Retainer  + 0.03 3% as a decimal  x (5 600 – 3 000)  Balance over $3 000 = $578 End of Show