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:


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
= 5100 × $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