SOLVING PROBLEMS ON Determining the Salary-Plus Commission

COMMISSIOS Salary-Plus Commission is a type of

commission received by employees with a
fixed or basic salary with additional
Determining the Staright Commission
commission from sold products.
When employees are paid only on
commission – that is, their commission is
1) Andy works as a salesperson. His
already their entire pay – they are said to
employer pays him a salary of Php4,000
be working on straight commission.
per week, plus a 3% commission on his
sales. If sold items worth Php5,000 in a
1) Esther is a real estate sales agent who
certain week, how much did he totally
receives a straight commission of 5% for
received that week?
every property she sells. If she
successfully sells a house for Php5,000,000
Solution:
how much will she get paid?
First, determine the commission.
C= rxS
Solution:
C = 3% x 5,000
To determine Esther’s commission,
C = 0.03 x 5,000
use the formula C = r x S.
C = 150
C= rxS
Then, compute the total amount (SC)
C = 5% x 5,000,000
that he received by adding his weekly pay
C = 0.05 x 5,000,000
(P) and his commission (C).
C = 250,000
SC = P + C
Therefore, Esther will get Php250,000
SC = 4,000 + 150
as her straight commission.
SC = 4,150
Thus, Peter received a total of
2) For every appliance he sells, Peter
Php4,150 that week.
receives 6% straight commission. One day,
he sold a television set for Php12,000, a
2) Zai earns a monthly salary of Php20,000
refrigerator for Php17,000, and a washing
as a sales agent in a real estate firm. If she
machine for Php8,000. How much is his
gets an additional 5% commission and she
straight commission?
is able to sell a property worth
Php2,000,000 in one month, how much is
Solution:
her pay that month?
First, add the selling prices of the
appliances to get the total amount of
Solution:
Peter’s sales (S).
First, determine the commission.
S = 12,000 + 17,000 + 8,000
C= rxS
S = 37,000
C = 5% x 2,000,000
Next, compute for the commission.
C = 0.05 x 2,000,000
C= rxS
C = 100,000
C = 6% x 37,000
Then, compute the total amount (SC)
C = 0.06 x 37,000
that she received by adding his monthly
C = 2,200
pay (P) and her commission (C).
Therefore, Peter received a straight
SC = P + C
commission of Php2,200.
SC = 20,000 + 100,000
SC = 120,000
Thus, Zai received a total of
Php120,000 that month.
Determining the Graduated Commission SOLVE ANSWER THE FOLLOWING ON A ½
The percent of sales earned (that is, SHEET OF YELLOW PAD PAPER.
commission rate) increases incrementally
as the sales amount increases is called 1) Alec works in a car company. Last
graduated or incremental commission. month, he sold a car worth Php1,500,000
and got a 5% commission. How much was
1) Andrew works in an insurance company his commission for the month?
that pays him agraduated commission
based on the following scale: 2) As salesperson in NRDE Mall, Anita
• 5% commission on first Php5,000 sales receives a monthly salary of Php17,000
• 10% commission on the next Php15,000 and a 10% commission on her sales. If she
• 15% on sales in excess of Php20,000 was able to sell items worth Php15,500 in a
What is his total commission if he closed a month, how much was her commission?
deal worth Php25,000? How much was her total earnings during
that month?
Solution:
To compute for his total commission, 3) In an insurance company, a
consider his sales amount (Php25,000) salesperson is given 2% commission on
as three partitions (S1, S2, and S3) her first Php10,000 worth of sales, 5%
based on the indicated amounts in the commission on her next Php20,000 worth
graduated commission scale. of sales, and 10% commission on sales in
excess of Php30,000. How much is her total
25,000 = 5,000 + 15,000 + 5,000 pay in a month if she has a salary of
(S1) (S2) (S3) Php15,000 and a total sales of Php80,000?

Commission on 1st Sales (S1):

CS1 = r x S1
CS1 = 5% x 5,000
CS1 = 0.05 x 5,000
CS1 = 250
Commission on 2nd Sales (S2):
CS2 = r x S2
CS2 = 10% x 15,000
CS2 = 0.1 x 15,000
CS2 = 1,500
Commission on 3rd Sales (S3):
CS3 = r x S
CS3 = 15% x 5,000
CS3 = 0.15 x 5,000
CS3 = 750
Lastly, add all the three commissions.
C = CS1 + CS2 + CS3
C = 250 + 1,500 + 750
C = 2,500
Thus, Andrew’s total commission is
Php2,500.