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    COMMISSION

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    AAAAA
    This document discusses different types of commission structures used to compensate salespeople. It defines commission as a percentage of sales received in addition to other earnings. Straight commission pays a fixed percentage of sales with no salary or sales limit. Salary plus commission provides a base salary plus additional earnings from sales. Salary plus bonus pays a fixed salary with bonuses for exceeding sales quotas. Graduated commission pays higher rates as sales volumes increase. Override commission provides supplemental income to managers based on subordinates' sales. Examples are given to illustrate how earnings are calculated under each structure.

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    COMMISSION

    Uploaded by

    AAAAA
    634 views15 pages
    This document discusses different types of commission structures used to compensate salespeople. It defines commission as a percentage of sales received in addition to other earnings. Straight commission pays a fixed percentage of sales with no salary or sales limit. Salary plus commission provides a base salary plus additional earnings from sales. Salary plus bonus pays a fixed salary with bonuses for exceeding sales quotas. Graduated commission pays higher rates as sales volumes increase. Override commission provides supplemental income to managers based on subordinates' sales. Examples are given to illustrate how earnings are calculated under each structure.

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    This document discusses different types of commission structures used to compensate salespeople. It defines commission as a percentage of sales received in addition to other earnings. Straight commission pays a fixed percentage of sales with no salary or sales limit. Salary plus commission provides a base salary plus additional earnings from sales. Salary plus bonus pays a fixed salary with bonuses for exceeding sales quotas. Graduated commission pays higher rates as sales volumes increase. Override commission provides supplemental income to managers based on subordinates' sales. Examples are given to illustrate how earnings are calculated under each structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    634 views15 pages

    COMMISSION

    Uploaded by

    AAAAA
    This document discusses different types of commission structures used to compensate salespeople. It defines commission as a percentage of sales received in addition to other earnings. Straight commission pays a fixed percentage of sales with no salary or sales limit. Salary plus commission provides a base salary plus additional earnings from sales. Salary plus bonus pays a fixed salary with bonuses for exceeding sales quotas. Graduated commission pays higher rates as sales volumes increase. Override commission provides supplemental income to managers based on subordinates' sales. Examples are given to illustrate how earnings are calculated under each structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    COMMISSION

    COMMISSION

     THE AMOUNT OF MONEY A SALESPERSON RECEIVES BASED ON THE LEVEL OF HIS OR HER
    SALES
    TYPES OF COMMISSION

    Straight Commission
    Salary Plus Commission
    Salary Plus Bonus
    Graduated Commission
    `Override Commission
    STRAIGHT COMMISSION

    FIXED PERCENT OF SALES


    NO FIXED SALARY GIVEN
    NO LIMIT TO THE TOTAL COMMISSION

    COMMISSION= SALES(BASE) X
    RATE
    EXAMPLE

    Liza, a beauty product agent, was able to


    sell beauty products worth P48,000. given
    that her commission rate is 15%, how much
    will she receive if her earnings are based on
    commission alone?
    ANS: P7,200
    SALARY PLUS COMMISSION

    RECEIVES COMMISSION IN ADDITION TO HIS/HER


    FIXED SALARY

    TOTAL EARNINGS= MONTHLY


    SALARY + SALES COM.
    EXAMPLE

    Liza receives a monthly salary of P20,000


    and 10% commission on her total sales,
    what would be her total earnings, if she was
    able to sell products worth P50,000?
    ANS: P25,000
    EXAMPLE

    Liza receives a monthly salary of P20,000


    and 10% commission on her total sales,
    what would be her total earnings, if she was
    able to sell products worth P50,000?
    ANS: P25,000
    SALARY PLUS BONUS

    BONUS IS GIVEN IF SALES IS MORE THAN THE


    QUOTA

    TOTAL EARNINGS= MONTHLY SALARY


    + BONUS
    EXAMPLE

    If Liza’s sales quota is 25,000, how much


    will be her earnings if she is given bonus of
    12% if she exceeds her sales quota ? She
    made a sale worth P50,000 and have a
    monthly salary of 20,000.
    ANS: P23,000
    GRADUATED COMMISSION

    COMMISSION RATE INCREASES AS THE SALES


    VOLUME INCREASES
    EXAMPLE

    Liza received no fixed salary and she is being


    paid based on graduated commission scheme,
    how much is her total earnings if she is paid
    10% on first 20,000, 15% on the second
    P20,000, and 20% on all sales in excess of
    40,000? (Sales 48,000) ANS: P6,600
    OVERRIDE COMMISSION

    ADDITIONAL COMMISSION THAT SALES


    MANAGER/SUPERVISORS EARN FROM THE SALES OF
    THEIR SALES REPRESENTATIVES

    OVERRIDE COMMISSION= SALES X RATE


    EXAMPLE

    If Liza’s sales supervisor receives 1%


    override commission, how much is the
    Override commission of the sales supervisor
    based on Liza’s sale worth P50,000 alone?
    ANS: P500

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