Your Reward for Hard Work
Your paycheck should reflect
your gross income.
Why is it important to know
how to calculate your gross
income?
Lesson Objective
Calculate straight commission and determine gross pay.
Content Vocabulary
commission
commission
straight
commission
rate
commission rate
Pay
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amount
of money
only
of money
of
paid
money
forpaid
selling
for
earned
eachafrom
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product
sales.
or aorpercent
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of the
total value of sales.
straight commission
Example 1
Milton Arps sells real estate at a 7½ percent
straight commission. Last week his sales
totaled $290,000.
What was his commission?
Example 1 Answer
Step: Find the commission.
Total Sales × Commission Rate
$290,000 × 7½%
$290,000 × 0.075 = $21,750
Example 2
Owen Theil is guaranteed a minimum salary
of $250 a week, or 7 percent of his total
sales, depending on whichever is greater.
What was his gross pay for a week in which
his total sales were $3,614?
Example 2 Answer: Step 1
Find the commission.
Total Sales × Commission Rate
$3,614 × 7% = $252.98
Example 2 Answer: Step 2
Find the gross pay.
Salary or Commission
$250 or $252.98
Gross pay is $252.98 (the greater amount).
Practice 1
Jermaine Dixon sells electronic equipment.
He receives a straight commission of 6½
percent of his total sales.
What commission will he receive in a week
where his sales total $12,416?
Practice 1 Answer
$807.04
Practice 2
Ryan O’Malley is paid either a commission
or by the hour, whichever is greater. His
hourly pay is $8.00 per hour with time and a
half for all hours that exceed 40 hours per
week. His commission is 7 percent of his
sales. Find his gross pay in a week in which
he worked 48 hours. His total sales for the
week were $6,120.
Practice 2 Answer
$428.40
6. Denise Robertson sells office supplies in the southeast
region of the U.S. She earns a straight commission of
7% of all products purchased. What is her commission
on sales of $5,690.85?
$375.50
$398.36
$411.90
$450.85
7. Last year, Maxwell Ackroyd sold a $1,700,000 apartment
complex and earned a 3.5% commission. He also sold a
$5,400,000 shopping center and a $7,300,000
commercial air field and earned a 2.2% commission.
What was his total commission?
$158,900
$234,500
$338,900
$456,000
8. ALGEBRA Tonya Solberg sells lawn mowers. She is
guaranteed a minimum salary of $1,500 per month plus
9.5% commission on total sales. How much in total
sales does Tonya need in order to have a gross pay for
the month of $3,250?
$17,500.00
$18,350.75
$18,421.05
$19,382.45