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Commission Notes: Key Words For Word Problems

Commission is a percentage of the total amount from a sold item that is paid to the seller. It may only be paid on sales above a certain value. The percentage and rules for commission can vary between companies. Commission is paid in addition to the basic wage. Formulas can be used to calculate the commission amount, gross wage, and basic wage based on the sales amount and commission percentage. An example shows a sales assistant earning a 2.5% commission on $1476 in sales, resulting in $36.90 in commission and a gross wage of $161.90 for the week.

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489 views

Commission Notes: Key Words For Word Problems

Commission is a percentage of the total amount from a sold item that is paid to the seller. It may only be paid on sales above a certain value. The percentage and rules for commission can vary between companies. Commission is paid in addition to the basic wage. Formulas can be used to calculate the commission amount, gross wage, and basic wage based on the sales amount and commission percentage. An example shows a sales assistant earning a 2.5% commission on $1476 in sales, resulting in $36.90 in commission and a gross wage of $161.90 for the week.

Uploaded by

Grace Joseph
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Commission Notes

 Commission is a percentage calculated from the total amount of a


sold item. This percentage value is always given in the question.
 Sometimes commission is only paid for items above a certain
amount or value.
 The percentage for commission may vary between different
companies and employers.
 Commission is paid additionally to the basic wage.

Key Words for Word Problems


All sales over/ all sales above- This phrase is used when commission
is only calculated if a particular value is passed. 

Gross Wage- the total wage given to a person {includes commission}. 


Commission Value- the amount of money earned from a commission
percentage

Formulas
percentage
Comission= × Sales amount
100
GrossWage=The basic wage+the comission
The Comission=gross wage−basic wage
Basic Wage=Gross wage−thecomission

Example
A sales assistant is paid a basic wage of $125 per week. In addition, she
is paid a commission of 2.5% on the value of the goods she sells. How
much commission will she be paid on sales amounting to $1476 and
what is her gross wage for that week?
Solution
The amount of commission earned
The percentage rate of commission= 2.5%
Basic wage= $1476
2.5
Commission earned= 100 × $ 1476
                                = $36.90

The gross wage earned


Basic Wage= $125
Commission= $36.90
Gross wage= $125 + $36.90
                         = $161.90

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