Commission Review

Front

What is commission?

Back

A percentage you earn from your total sales.

Front

How do you calculate commission?

Back

Commission = Total Sales × Commission Rate.

Front

If a salesperson sells $10,000 worth of products with a 10% commission rate, how much commission do they earn?

Back

$1,000.

Front

What is a base salary?

Back

A fixed amount of money paid to an employee, not including commissions.

Front

If a salesperson has a base salary of $1,000 and earns a 5% commission on $20,000 in sales, what is their total pay?

Back

$2,000.

Front

What does it mean to earn a commission on sales?

Back

It means you receive a percentage of the sales you make as additional income.

Front

If a salesperson earns $500 in commission from $5,000 in sales, what is their commission rate?

Back

10%.

Front

What is the total pay formula for a salesperson?

Back

Total Pay = Base Salary + Commission.

Front

If a salesperson earns a 3% commission on $15,000 in sales, how much do they earn in commission?

Back

$450.

Front

What is the difference between fixed salary and commission?

Back

Fixed salary is a set amount paid regularly, while commission is based on sales performance.