ABM - BUSINESS MATHEMATICS

QUARTER 2
WEEK 1
COMMISSIONS

JENNIFER HERNANDEZ
November 8, 2022
 Let us Pray
QUARTER 2
WEEK 6
 Let us Pray
QUARTER 2
WEEK 6
PLANNING

Review of Past Lessons

What I Need to Know?
This will give you an idea of the skills or competencies you
are expected to learn, you are expected to:

✓ Illustrate different type of commissions

✓ Compute commissions on cash basis and commission on
installment basis
✓ Illustrate how to obtain down payment, gross balance and
current increased balance
✓ Solve problems involving interest and commission
 PRETEST
STRAIGHT COMMISSION COMMISSION RATE
COMMISSION
SALARY PLUS COMMISSION GRADUATED COMMISSION

1. What do you call the type of commission where a person is

paid a percentage of his/her sales only?
2. What do you call a fee to paid to person who makes a sale?
3. What do you call a type of commission where a person gets
paid a salary and a percentage of his/her sales?
4. What do call a type of commission where the percentage
changes based on how much someone sells?
 PRETEST

5. John is earning a commission of 3% on all his sales other than

his basic salary of ₱ 10,000. How much is his take home pay
in a month where his sales amount to ₱ 75,000?
a. ₱ 10,000.00 c. ₱ 75,000.00
b. ₱ 25,120.00 d. ₱ 12,250.00
6. A salesman agreed to have a monthly basic pay of ₱ 12,000
plus a commission of 8% on all sales above ₱ 75,000. How
much is his take home pay in a month where his total sales
amounted to ₱ 120,000?
a. ₱ 15,600 c. ₱ 12,000
c. ₱ 3,600 d. ₱ 16,500
 PRETEST

For numbers 7-10, compute the amount of commission. Show

your complete solution

amount of sales amount of commission

7. _____ 1,200 4.5%

8. _____ 3,800 8%
9. _____ 5,260 6%
10. _____ 8,680 8.5%
BASIC CONCEPTS OF
COMMISSIONS
COMMISSION – is a fee paid to person who
makes a sale. The commission is usually a
percent of the selling price. The percent is
called the Commission Rate
3 Types of Commission

1. STRAIGHT COMMISSION

2. SALARY PLUS COMMISSION

3. GRADUATED COMMISSION
STRAIGHT COMMISSION
It is a type of commission where a person is paid a
percentage of his/her sales only.

Example:
Karyl works on a “commission only” basis and receives 3%
on her monthly sales without a base salary. What is her
commission and total pay during a month when she sells
₱108,000 worth of appliance, compute for the commission.

Solution:
STRAIGHT COMMISSION
It is a type of commission where a person is paid a
percentage of his/her sales only.

Example:
Karyl works on a “commission only” basis and receives 3%
on her monthly sales without a base salary. What is her
commission and total pay during a month when she sells
₱108,000 worth of appliance, compute for the commission.

Solution: The commission will be 3% of ₱108,000.

And that is, ₱108,000(0.03) = ₱3,240
SALARY PLUS COMMISSION
It is a type of commission where a person gets paid a salary
and a percentage of his/her sales.

Example:
Mr. Cueva decides to work for ABX Company that will pay
him ₱3,500 per week and 6% of any sales above ₱3,000. If he
sold goods worth ₱5,000, what is his gross pay?

Solution
SALARY PLUS COMMISSION
It is a type of commission where a person gets paid a salary and a
percentage of his/her sales.

Example:
Mr. Cueva decides to work for ABX Company that will pay him
₱3,500 per week and 6% of any sales above ₱3,000. If he sold
goods worth ₱5,000, what is his gross pay?

Solution: ₱5,000 – ₱3,000 = ₱2,000

His commission will be 6% of ₱2,000 and that is: (₱2,000)(0.06)
Commission = ₱120
His gross pay is computed as ₱3,500 + ₱120 = ₱3,620
GRADUATED COMMISSION
It is a type of commission where the percentage changes
based on how much someone sells. Most of the companies
encourage their agents to sell more goods.

Example:
Mary has a monthly commission plan where she receives
2.5% on the first ₱100,000 of sales during the month and
3.5% on the sales above ₱100,000. If her total sales during
the month is ₱150,000, compute her commission.

Solution:
GRADUATED COMMISSION
It is a type of commission where the percentage changes
based on how much someone sells. Most of the companies
encourage their agents to sell more goods.

Example:
Mary has a monthly commission plan where she receives
2.5% on the first ₱100,000 of sales during the month and
3.5% on the sales above ₱100,000. If her total sales during
the month is ₱150,000, compute her commission.

Solution: 150,000 – 100,000 = ₱50,000

SALES AMOUNT COMMISSION COMMISSION
RATE
₱100,000 ‘0.025 2,500

₱50,000 ‘0.035 1,750

TOTAL ₱4,250
COMMISSION
COMMISSION ON INSTALLMENT BASIS
All computations of commission above are on cash sales. If
the sales are on installment basis, they are giving
commissions based on the payment made by the buyers.

Example:
A salesman, earning 4% commission made a sale of ₱100,000
to be paid in 5 equal monthly installments. How much will be
his monthly commission?

Solution:
COMMISSION ON INSTALLMENT BASIS
All computations of commission above are on cash sales. If
the sales are on installment basis, they are giving
commissions based on the payment made by the buyers.

Example:
A salesman, earning 4% commission made a sale of ₱100,000
to be paid in 5 equal monthly installments. How much will be
his monthly commission?

Solution: ₱100,000 ÷ 5 = ₱20,000

4% of 20, 000 is ₱800.00
Therefore the salesman’s monthly commission is ₱800.00
COMMISSION ON INSTALLMENT BASIS
All computations of commission above are on cash sales. If
the sales are on installment basis, they are giving
commissions based on the payment made by the buyers.

Example:
A salesman, earning 4% commission made a sale of ₱100,000
to be paid in 5 equal monthly installments. How much will be
his monthly commission?

Solution: ₱100,000 ÷ 5 = ₱20,000

COMMISSION ON INSTALLMENT BASIS
All computations of commission above are on cash sales. If
the sales are on installment basis, they are giving
commissions based on the payment made by the buyers.

Example:
A salesman, earning 4% commission made a sale of ₱100,000
to be paid in 5 equal monthly installments. How much will be
his monthly commission?

Solution: ₱100,000 ÷ 5 = ₱20,000

4% of 20, 000 is ₱800.00
 1
2
3
4
5
6
ASSIGNMENT

1. What is down payment?

2. What is gross balance?
3. What is Current Increased Balance?
DOWN PAYMENT a type of payment made in cash
during the onset of the purchase of an expensive good or
service. The payment represents a percentage of the full
purchase price
A down payment is a sum of money that a buyer pays in
the early stages of purchasing an expensive good or
service. The down payment represents a portion of the
total purchase price, and the buyer will often take out a
loan to finance the remainder
GROSS BALANCE refers to the total amount of money a
bank has on deposit before adjusting for cleared checks
or deposits, as well as reserve requirements.
A simple case of gross balance refers to what is readily
available for you to use based on your bank deposits.

Example: A check amounting to ₱5,000 that has been

deposited today may not be withdrawn the next day
because it has not cleared yet. If your bank passbook
currently contains ₱30,000, you may not be able to
withdraw the whole amount yet because your gross
balance is only ₱25,000 since your check has not been
cleared yet.
CURRENT INCREASED BALANCE (CAB) is part of a
country's financial inflow and outflow record. It is part of
the balance of payments, the statement of all transactions
made between one country and another. The balance of
payments (BOP) is the place where countries record their
monetary transactions with the rest of the world.

Examining the current account balance of a country's

BOP can provide a good idea of its economic activity. It
includes activity around a country's industries, capital
market, services, and the money entering the country
from other governments or through remittances.
Solve the following problems. Write your answers on your
notebook. Don’t forget to show your complete solution.

1. Sonny works as a furniture salesman and earns a base salary

of ₱1,550 per week plus 6% commission on sales. What was
Sonny’s weekly gross salary if his total sales were ₱57,000?

2. Veronika works at Future Shop and earns ₱350 per hour plus
6% commission on sales. Last week Veronika worked 40 hours.
What was Veronika’s weekly gross salary if her total sales were
₱25,000?

3. William earns straight commission as a real-estate agent. Last

month his total sales were ₱971,168.00. If William earns a 3%
rate of commission, what was his gross income last month?
4. Sophia earns straight commission selling cell phone contracts.
Last month she sold 341 cell phone contracts worth a total of
₱238,192.00. If Sophia earns a 5% rate of commission, what
was her gross income last month?

5. Brian is a salesman for a wholesale computer parts company.

He earns straight commission at a rate of 4%. Last month his
total sales were ₱382,968.00. What was his gross monthly
income last month?
6. Alexander has a monthly commission plan where he receives
2% commission on all his sales for the month. If his sales
exceeds ₱40,000, a bonus of 1% of everything over ₱40,000 is
given to him. For sales more than ₱80,000, an additional of 1%
of everything over ₱80,000 is received. How much is his total
commission during a month when he had total sales of ₱96,500?

7. Jade Erika is a sales agent for kitchen appliances. Her basic

monthly salary is ₱16,000. As an agent, she is expected to sell
₱10,000 worth of appliance every week. Whenever she exceeds
the quota, she gets a 3% commission on the week’s total sale.
The following table shows how she did on sales for the month of
September
7. Jade Erika is a sales agent for kitchen appliances. Her basic
monthly salary is ₱16,000. As an agent, she is expected to sell
₱10,000 worth of appliance every week. Whenever she exceeds
the quota, she gets a 3% commission on the week’s total sale.
The following table shows how she did on sales for the month of
September
WEEK SALES
1 ₱9,855
2 ₱14,398
3 ₱14,091
4 ₱16,818

A. How much is Jade Erika’s commission all in all?

B. How much does she earn for the month of September?
ACTIVITY 1.2 TRY THIS!
Solve for the amount of commission. Don’t forget to show your
complete solution. Write your answers on your notebook.

Complete the table:

AMOUNT OF RATE OF AMOUNT OF
SALES COMMISSION COMMISSION
3,400 2% (1)
5,000 4% (2)
10,000 5.5% (3)
50,000 10% (4)
110,000 11% (5)
GET ½ YELLOW PAD CROSSWISE
Solve the problem. Don’t forget to show your complete solution.
Imagine that you are the CEO of a certain company. As the CEO of company, you
have decided to have a 3.5% commission on every total sales of your employees.
You wish to tabulate the total commissions of your employees by making use of the
data. Solve the given problem in order to complete the table.
EMPLOYEE SALES AMOUNT COMMISSION RATE COMMISSION

A 300,000 3.5% ?

B 250,000 3.5% ?

C 175,000 3.5% ?

D 115,000 3.5% ?

E 45,000 3.5% ?

TOTAL COMMISSION OF EMPLOYEES ?

 NEXT MEETING

INTRODUCTION TO SALARIES,
WAGES,
INCOME, AND BENEFITS