# Commission and Retainer

Salespeople are paid a **commission (a percentage of sales)** or a **retainer (a fixed weekly income)**.
The more sales that a salesperson makes, the greater is their income.

**Useful rules** are:

- Commission = Percent Commission × Sales
- Total Income = Commission + Retainer
- Sales = Commission × 100 ÷ Percent Commission

## Example One - Commission

Salesman Sam earns 5% of whatever he sells. If he sells goods worth $4000, what commission does he receive?

**Answer:**

Commission

= Percent Commission × Sales

= 5% of $4000

= ^{5}⁄_{100} × $4000

= $200

## Example Two - Commission and Retainer

Salesman Sue earns a retainer of $700 per week in addition to a commission of 3%. How much does she earn for selling goods worth $20000.

**Answer:**

Commission

= Percent Commission × Sales

= 3% × $20000

= $606

Total Income

= Commission + Retainer

= $600 + $700

= $1300

## Example Three - Finding the Original Sales

A salesperson works on a commission of 5% only. If she earns $400 commission, what were the original sales?

**Answer:**

Sales

= Commission × 100 ÷ Percent Commission

= $400 × 100 ÷ 5

= $8000

## Questions - Commission and Retainer

**Q1.** Sophia earns a commission of 3.5% of all sales in addition to a weekly retainer of $500. How much does she earn if her sales for one week are $4000?

**Q2.** Zachary works on commission only. He earns 5% of all sales. If he earns $800, how much were his sales?

**Answers:**

**A1.** $640

**A2.** $16000