Commissions Sample Problems

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Here are some tips for Commissions, which aligns with Texas state standards:

Commissions

For work, some people get paid commissions. Commission is usually a percentage of the amount of goods they sell.
For example, when you buy a car at the dealership, the salesperson who helped you will get a percentage of the car sale as commission.

There are jobs that pay only commission. There are also jobs that pay a set salary every month (called base salary) and commission on top. Some jobs have a quota which is how much the employee is expected to sell.

Amount of money made = Base salary + (Amount sold × Commission percentage)

Example 1: Only commission

Answer the following questions involving commission.
Sharon makes money by commission rates. She gets 17% of everything she sells. If Sharon sold $37000 worth of items this month, what is her salary for the month?

Amount of money made = Base salary + (Amount sold × Commission percentage)

= 0 + ($37000 × 17%)

= $6290

Example 2: Base salary and commission

Answer the following questions involving commission.
Jose makes 10000 a month plus some money by commission rates. He gets 6% of everything he sells. If Jose sold $59000 worth of items this month, what is his salary for the month?

Amount of money made = Base salary + (Amount sold × Commission percentage)

= $10000 + ($59000 × 6%)

= $10000 + $3540

= $13540

Example 3: Base salary and commission with quotas

Answer the following questions involving commission.
Tiffany makes a base monthly salary of $3600. As a vendor, she must sell $17000 worth of items per month. She also makes a 5% commission on all sales beyond the monthly quota. If Tiffany sold $23800 worth of items this month, what is her total salary for the month including base salary and commission to the nearest dollar?
The amount of money Tiffany makes from commission is based on how much she sold this month over the quota.

Amount of money made = Base salary + (Amount sold over quota × Commission percentage)

= $3600 + (($23800 - $17000) × 5%))

= $3600 + ($6800 × 5%))

= $3600 + $340

= $3940

Amount of money made	=	Base salary	+	(Amount sold × Commission percentage)
	=	0	+	($37000 × 17%)
	=	$6290

Amount of money made	=	Base salary	+	(Amount sold over quota × Commission percentage)
	=	$3600	+	(($23800 - $17000) × 5%))
	=	$3600	+	($6800 × 5%))
	=	$3600	+	$340
	=	$3940