Commission

“Senior High School
Demonstration Teaching
Region IV-A Calabarzon”
Jubailyn V. Villegas
Tanauan School of Fisheries
SHS –ABM Teacher II
Business Math Prayer
Heavenly Father,
Thank you for ADDING joy in our lives.
Thank you for SUBTRACTING our sorrows and sadness and DIVIDING your
thoughts to one of us.
Thank you for MULTIPLYING your love to us without PERIODIC PAYMENT.
Lord we are like money that has no CASH VALUE without you, you are our
everything.
Forgive us oh LORD for all that we’ve done in thoughts, words and actions not
only ANNUALLY, MONTHLY but also DAILY.
Amen.
Human Knot!
 Learners will be divided into 2 groups
 Each group will form a circle facing each other
 Group mates will connect their hands together
in a crisscross position.
 Each team should should figure out how to
untangle the knot (crisscross position) without
breaking the chain of hands
 First group to finish wins.
Recall: What have you learned?
Buying and Selling

O Mark Up
O Mark Down
O Mark-on
Activity:
Name the different
occupations how
employees are paid.
Answer: Real State Agent
Impressive!
Answer: Stock Broker
Excellent!
Answer: Insurance Agent
Brilliant!
Answer: Bill Collector
Superb!
Answer: Sales Person
Amazing!
Objectives:
At the end of the session you will be able to:
 Identify the different types of commission;
 realize the use of different types of
commission in a business;
 compute and give examples of straight
commission; salary plus commission and
graduated commission.
Commission
O It is a fee that a business pays to a
salesperson (agent) in exchange for his
services in facilitating, supervising, or
completing a sale.
O May be based on a flat arrangement or as a
percentage of the revenue generated by a
salesperson.
“Commission”
Three different types of
commission:
1. Straight Commission, also
called (revenue commission)
2. Salary plus Commission
3. Graduated Commission
Straight Commission, also called
(revenue commission) .
O When a sales agent is paid on a percentage
of sales only. (This is very profitable if you
are selling high-ticket items.)
Examples:
Sales Agent (Car), Real State Agent
Straight Commission
O Pros: The amount of income
you earn is entirely in your
control.
O Cons: Pay is not tied to hours
worked, if you cannot close
sales, you will not earn
money.
Problem Solving
Bill works as a car salesman and earns 1.5 %
commission on all sales. One month his sales
were P300, 000. Determine his pay.
Commission Amount = Percentage *sales

= 0.015 x 300,000
= 45,000
Let Us Practice!
Sales Commission Commission

Rate
500,000 14% ?
Answer:
P70,000
Solution: ( 500,000 x .14)
Salary plus Commission
O a commission in which a salesperson gets

his basic salary and a percentage of
whatever sales he makes.
Examples:
Sales Representative (Mall), Bill Collector
Salary Plus Commission
O Pros: Pay is not impacted by
performance
O Cons: Earnings are somewhat
capped. A talented employee
who is successful in
completing sales may earn
less with this structure.
Problem Solving
Sheila sells computers and earns
P13,000/mo plus 2% commission on sales.
One month she sold P350, 000 worth of
product. Determine her pay.
Gross Pay = Fixed Salary + Commission

= 13,000 + 0.02(350,000)
= 13,000 + 7,000
= 20,000
Let Us Practice!
Sales Commission Salary Commission
Rate Amount
800,000 3% 15,000 ?
Answer:
P39,000
Solution: (800,000 x .03 + P15,000)
Graduated Commission
O a commission, which varies according to

how much sales, is made.
Examples:
Insurance Agent
Range:
100,000 -200,000 = 3%
300,000 -400,000 = 4%
500,00 - 600,000 = 5%
Graduated Commission
O Pros: Employer will be motivated to
perform to your potential, rewards are
directly linked to performance.
O There is an emphasis on quantity over
quality meaning that the customer
satisfaction may not be a priority of
the employer.
Problem Solving
Matt is an insurance agent and earns 2.5 %
on the first P100, 000 of the sale of insurance
and 3% of any amount over P100, 000.
Determine his pay if he sold an insurance
worth P475,000.
Comm Total = 2.5 % commission + 3% commission

= 0.025(100,000) + 0.03(475,000-100,000)
= 0.025(100,000) + 0.03 (375,000)
= 4500
Let Us Practice!
Range:
100,000 -200,000 = 3% 700,00 - 900,000 = 9%
300,000 -600,000 = 6% 1,000,000- 1,300,00 = 12%
Sales Sales Total

January February Commission
800,000 500,000 ?
Answer:
P102,000
Solution: Jan (800,000 x .09) = 72,000
Feb (500,000x .06) = 30,000
Application:
Application :Ship is Sinking!
Mechanics:
1. Learners are spread out all over the classroom
2. Teacher will pick a random number and shouts: “The
ship is sinking group yourselves into four”.
3. The learners race to get into groups of four. After
forming a group of four they shout “Complete”.
4. Those with less or no group will have the chance to
answer and explain the question appears on the screen.
5. The group disperse and the next number will be picked.
It is a fee that a business pays
to a salesperson (agent) in
exchange for his services in
facilitating, supervising, or
completing a sale.
If you are an employer,
what kind of commission
will you offer to increase
the volume of sales of your
company?
Minette works as real
estate agent and earns 5 %
commission on all sales.
One month his sales were
P2, 000,000. Determine his
pay.
Hazel resigned from her job out of
boredom and took a new job as a
sales representative. Believing that
she will enjoy more in this new job,
she didn’t really mind what she will
get.
If you were Hazel, which mode/type
of commission would you take? Why?
Assessment: Get ½ sheet of paper
1. Juan makes money by commission rates.
He gets 15% of everything he sells. If Juan
sold PhP230,000 worth of items this month,
what is his commission for the month?
2. Mark makes PhP12,000 a month plus
some money by commission rates. He gets
8% of everything he sells. If Mark sold
PhP60,000 worth of items this month, what is
his commission for the month?
Answers:
1. Salary = 15% (PhP230,000) = 0.15
(230,000) = PhP34,500
2. Commission = 8% (PhP60,000) =
PhP4,800. His salary for the month =
PhP12,000 + PhP4,800 = PhP16,800.
Assignment:
O Advanced study on how to
compute commissions on
cash basis and commission
on installment basis.
Thought for the day:
“Everything in life is a sale
and everything you want is
a commission.”
-Grantcardone.com

Commission

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What is the purpose of the business math prayer?

What activity is described for learners to do in groups?

“Senior High School

Buying and Selling

Commission Amount = Percentage *sales

Sales Commission Commission

O a commission in which a salesperson gets

Gross Pay = Fixed Salary + Commission

O a commission, which varies according to

Comm Total = 2.5 % commission + 3% commission

Sales Sales Total

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