Business
Mathematics
11-09-2022
PLEASE WEAR YOUR SHOESHOCKS
RECALL
LESSON OBJECTIVES
1. Compute commission on cash basis and
commission on installment basis
1. Eric resigned from his job out for personal growth and took a new
job as sales representative. Believing that he will enjoy in this new
job, he didn’t really mind what he will get. The following are the
options he was offered by the company:
1. His pay would be through the straight commission.
2. He gets a fixed salary plus commission.
3. He gets paid through gradual commission.
4. He gets paid on commission by installment basis.
What types of commission is being offered in the options no. 1 to 4?
COMMISSION ON CASH BASIS
this is similar to computing straight commission which is computed by
directly multiplying the commission rate of the total amount of sales.
EXAMPLE
Anne is a salesperson at ABC gadget Store. She gets a 6.1%
percent commission for every cash purchase of a laptop. In
her first month of work, she was able to sell five laptops that
were paid at P36,000 each. How much is her total commission
for such sales?
EXAMPLE
Anne is a salesperson at ABC gadget Store. She gets a 6.1%
percent commission for every cash purchase of a laptop. In her
first month of work, she was able to sell five laptops that were
paid at P36,000 each. How much is her total commission for such
sales?
Solution:
5 laptops x 36,000 = P180,000
180,000 x 0.061 (6.1%) = P10,980.00
Therefore, Anne received a P10,980.00 commission on five
laptops sold.
COMMISSON ON INSTALLMENT BASIS
- the commission is computed based on the
instalment period.
EXAMPLE
1. Anne is a salesperson at ABC Gadget Store. She was able
to sell five laptops that cost P36,000 each. The promo is
that the customer may py the amount in six (6) months,
wherein the total price is equally divided into six equal
monthly instalments with 0% interest. Anne gets a 2%
commission on the first month of paymnt, and it decreases
by 0.30% every month thereafter. The commission is
computed based on the outstanding balance of the month.
How much will be here total commission at the end of the
instalment period?
SOLUTION:
Total Sales = 36,000 x 5 = 180,000
Monthly Installment 180,000 ÷ 6 = 30,000
1st month : 180,000 x 2% = 3,600
2nd month : 150,000 x 1.7% = 2,550
3rd month : 120,000 x 1.4% = 1,680
4th month : 90,000 x 1.1 % = 990
5th month : 60,000 x 0.8% = 480
6th month: 30,000 x 0.5% = 150
Total Commission = P9,450
ACTIVITY: ON YOUR NOTEBOOK
Solve the following, with computation:
1. Eric is a freelance broker of condominium units in Naga.
He is given 12% of the total sales he made. If he sold a unit
worth P1,500,000, how much was his commission?
2. If the payment of the condominium sold by Eric will be
paid at 3 monthly installment by the customer, and paid at a
4% decreasing commission rate every month. How much will
be his commission if it is computed based on the
outstanding balance of the month?
WRAP UP
1. What does it mean by commission on cash basis?
2. How about commission on instalment basis?
3. Do you know how to compute commission in any types?
ANY QUESTIONS?
QUIZ TIME : ½ sheet of paper
1. John receives P10,000.00 as a monthly salary. As an agent, his monthly quota is
P50,000.00 for which he gets 5% commission on all sales beyond his monthly quota. If he
sold P75,000.00 worth of products this month, what is his total salary for the month?
2. Salesman Randy gets fixed salary of ₱2000 per month and a commission of 2% on sale.
If total sale is ₱30,000 for the month, find his total salary for the month?
3. Mike makes a commission of 10% on each TV accessories sold at store. Each tv
accessories costs ₱120.
How much money will he make as commission if store sells 25 TV sets?
4. John makes a commission of 2% when a house is sold by his company. How much
money will John make as commission if his company sells the house for ₱300,000.00?
5. Alexandria, a car dealer, earns 40% commission of her luxury vehicles sales. Last year,
her sales were ₱480,000. What was the total amount of her commission last year?
ASSIGNMENT:
1. Norman is a salesman, who agreed to get 8% commission on all his
sales. If he is given P5,000 basic pay and posted 40,000 sales in a month,
find his:
a. commission b. total compensation
2. An agent who sold P35,000 worth of appliances got 5% commission.
How much is his commission?
3. Lea is a medical representative who is earning P8,000 basic monthly pay
and agreed to get additional 3% on all his sales above P20,000. His total
sales are the ff: 1st week 19,000 2nd week 30,000 Find his:
a. commission b. gross earnings
