Straight Commission is calculated to be the person's wage based solely on sales.
Example:
1. Patrick works at the Brick, and is paid based on his weekly sales. Last week he sold a couch for $800, and a chair for $550, and two stoves at $1200 each. If Patrick earns 12.5% commission on all items sold, how much did he make last week?
a) Add all the sales together:
$800 + $550 + $1200 + $1200 = $3750
b) Multiply total sales by the commission (as a decimal)
$3750(0.125) = $468.75
Patrick made $468.75 last week.
Graduated Commission is calculated into a person's pay in addition to his/her regular salary or wage.
Example:
2. Barb, the assistant manager of a clothing store, earns a salary or $350.00 per month. She also receives a 5% commission on the first $9000.00 she sells, and 6% on sales over $9000.00. If Barb sold $17000 worth of clothes last month, what was her total pay?
a) Calculate the commission on the first $9000.00
$9000.00(0.05) = $450.00
b) Calculate the amount of sales above $9000.00
$17 000.00 - $9000.00 = $8000.00
c) Calculate the commission on the sales above $9000.00
$8000.00(0.06) = $480.00
d) Find the total amount of commission Barb makes.
$480.00 + $450.00 = $930.00
e) Add the amount of commission to the salary
$930.00 + 350.00 = $1280.00
Barb made $1280.00 last month with based on her salary and commission.
Piecework Commission is paid to an employee according to the amount of work that he/she produces.
Example:
3. Chuck receives $36.00 for every table he makes. He was really busy yesterday and was able to make 12 tables. How much money did Chuck make yesterday?
a) Multiply the pieces made by the price paid per piece.
12($36.00) = $432.00
Chuck made $432.00 yesterday for making 12 tables.