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Ch.1.3 Do More, Make More: Commissions and Payments By Item

Ch.1.3 Do More, Make More: Commissions and Payments By Item. Determine how much a salesperson earns when his or her pay is based on a commission, price rate Understand that the earnings of a person who works on commission can vary from month to month. Earning Commissions:.

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Ch.1.3 Do More, Make More: Commissions and Payments By Item

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  1. Ch.1.3 Do More, Make More: Commissions and Payments By Item Determine how much a salesperson earns when his or her pay is based on a commission, price rate Understand that the earnings of a person who works on commission can vary from month to month

  2. Earning Commissions: • Commission – income that is earned as a part of a total number of sales Ex. Jason, who works at a used-car lot, earns a 15% commission on every car he sells. Today, Jason sold a car for $6,000. Calculate the commission Jason will get from this sale. C = 6000(0.15) = 900

  3. Calculate the Commission: • A Realtor earns a 3% commission on every home he/she sells. Say that the Realtor sells a $400,000 home. What is the Realtor’s commission? • A car salesperson sold 2 cars this month. The total amount of sales was $56,000. What is the car salesperson commission for that month if his commission is 7%?

  4. Base Salary: • The salary one earns before commission. This amount is automatic, even if one does not sell any items.

  5. Piece Rate: • Instead of receiving a salary for working a certain amount of time, some people are paid a piece rate, or item rate for the number of items that the produce or sell. If you work fast or work on your own schedule, being paid a piece rate may be advantageous to you .

  6. Commission Formula • C = prn where p = price of one item r = commission rate n = # of items sold Ex. Betty sales appliances at a department store. She receives a 7% commission on each item which sell for $12.95 each. What would her commission be for selling 32 appliances in two weeks?

  7. How many appliances does Betty need to sell in order for her to earn at least $50 on commission?

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