Commission

Commission

Secondary 1

Commission

Commission is a payment based on a stated rule, often a percentage of the value sold. The sales value is the base, and a fixed salary is separate from the commission.

Example

A salesperson receives a fixed \(\$500\) plus 4% of \(\$2500\) in sales. The commission is \(0.04\times\$2500=\$100\), so the total earnings are \(\$600\).

If only total earnings are given, subtract the fixed pay first. Then divide the commission by its nonzero rate to recover sales. For a rule with bands, calculate each band separately before adding.

Check whether the question asks for commission alone or total earnings. A salary should be added only when the rule provides one.

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