Final answer:
The commission earned from $400 worth of merchandise at a 30% commission rate is $120. Commission is a payment earned for making a sale. Typically, a commission is a percentage of an employee's sales, though it can also be a fixed dollar amount per sale.
Step-by-step explanation:
The question asks how much commission a person earns from selling merchandise. To calculate the commission, you must use the given percentage and the total sales amount. In this case, the person earns a 30% commission from $400 worth of merchandise. To find out the commission amount:
- Multiply the total amount of sales by the commission rate: $400 × 0.30 = $120.
Therefore, the person earned a commission of $120 last month from selling the merchandise.
Gross commission is the total amount a salesperson receives from sales. It can be calculated with the following equation: commission = total sales revenue * commission rate. So if a salesperson sells a total of $2,000 of product and receives 5% in commission, they make $100.
An employee works for a boot sales company and receives a base income, in addition they receive 6% of the total revenue earned from their sales. If the employee sold a total of $1,000 last month, then they earned a commission of $60.
total commission = total sales * commission percentage
This formula can be modified to consider jobs that provide a base pay or a salary. Salary plus commissions are calculated using the following formula:
total income = (total sales * commission percentage) + base salary
Let's walk through some commission examples to see how to calculate a commission and total income step by step.
A position offers a monthly salary of $2,000, plus commission based on sales revenue. Their commission per percentage is 5%.