5.4 - Commission and Graduated Commission

Commission: an amount of money you are paid for selling a product or service

Straight Commission: when commission is your only form of pay

Commission Rate: either a specified amount of money paid for each sale or a percent of the total value of your sales

Minimum Salary: when commission isn't the only form of pay. In most cases, you are paid a base salary and and earn commission in addition to this

Commission Rate = 0.075

Total Sales = $290,000

 $straight\ commission\ =\ \left(0.075\right)\left(290,000\right)$  

 $straight\ commission\ =\ \text{21,750.00}$  

 $commission=\left(0.0625\right)\left(32,640\right)=2,040$  

 $salary\ +commission\ =\ 1,850+2,040=3,890\$  

Graduate Commission: a different commission rate for different levels of sales