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What is the correct calculation to figure out a commission rate?

A. List price ÷ total commission
B. List price × total commission
C. Sales price ÷ total commission
D. Total commission ÷ sales price

User Moshfiqur
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1 Answer

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Final answer:

The correct formula to calculate the commission rate is D. Total commission ÷ sales price. It allows you to determine the percentage of the sales price that is given as commission.

Step-by-step explanation:

To figure out a commission rate, you would use the formula option D. Total commission ÷ sales price. This is because the commission rate is the proportion of the sales price that is given as commission. To compute it, you divide the total commission by the sales price. Let’s say, for instance, you earn $50 commission on a $500 sale. The commission rate is therefore $50 ÷ $500 = 0.1 or 10%.

Learn more about Commission Rate

User Amehta
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