Calculating Commission, Summaries of Business

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Calculating Commission

 What is commission?

 A percent of total sales earned by an employee or business.

 Formula: Commission = percent of commission ∙ total sales

Example 1:

 An agent makes 15% commission on an athlete’s signing bonus. If the bonus is $90,000, what is the agent’s commission?

 The total commission made was $13,500.

Step 1: Convert your percent (%) to a decimal.

15% = 0.

Step 2: Multiply the decimal by the amount of money made.

Step 3: Round to the nearest cent if necessary.

Let’s Try One Together!

 A real estate agent makes 4% commission on a property she sells. To the nearest dollar, how much commission does she make on a sale of a house for $132,500?

 Step 1: Turn the percent into a decimal

 Step 2: Multiply the decimal and amount of money

 Round to the nearest cent if necessary.

 The amount of commission the real estate agent makes on this sale is $5,300.

On Your Own

 Anthony receives a 9% commission on magazine subscription sales. Last week, his total sales were $1,800. How much commission did he earn?

 Step 1: Turn the percent into a decimal

 Step 2: Multiply the decimal and amount of money

 Round to the nearest cent if necessary.

 Anthony earned $162 in commission last week.

Lesson Quiz

1) Find the commission:

Total sales: $1,

Percent commission: 6%

2) Find the commission:

Total sales: $2,

Percent commission: 10%

3) What is a salesperson’s commission on a $

sale if the commission rate is 5%?

4) Sarah works in an appliance store. She

receives a commission in addition to her hourly

pay. She earns a 2% commission for sales up to

$6,000 and a 7% commission for all sales in a

month over $6,000. Last month her sales were

$7,200. How much was her commission?

Homework

Commission Worksheet

Study for fraction quiz Thursday

Quiz corrections due Thursday