commission powerpoint presentation .pptx

business math

1. Grade 11 - ABM

2. Commission It is a way of compensating employees who sell company’s commodities and services.  

3. Types of Commission Salary Plus Commission – employee is being paid a guaranteed salary plus a commission on total sales.

4. Example: Jerome works for a company that sells lamps. He is given a salary of ₱15,000 a month and a commission of 5% on his sales. If his sales for the month of September amount to ₱125,675.25, how much is his total income for the month?

5. Types of Commission Bonus Commission – salesperson is given a bonus if he or she exceeds his or her sales quota.

6. Example: Jason is hired by a lending importer of electrical appliances to sell LED bulbs. He was told that he will given a monthly salary of ₱14,500 plus a 10% commission in excess of ₱10,000 of sales. For the month of July, he was able to sell ₱32,000 worth of LED bulbs. How mush was his total income for the month?

7. Types of Commission Straight Commission – salesperson’s earning or wage is based on his/her commission alone.

8. Example: Jerry was hired to sell a brand of air-conditioning unit, with the understanding that he gets 15% commission. For the month of April, he was able to sell three air conditioning units priced ₱18,900, ₱28,753, and ₱23,576, respectively. How much his commission for the month?

9. Types of Commission Graduated Commission – given to sales person who do not receive a regular salary. - commission rate increases as the sales volume increases.

10. Example: Jaycee works for a company that sells herbal medicine. For the month of October, his sales totaled ₱62,785. If his contract states that he gets 10% commission on the first ₱30,000, an additional 3% on the next ₱20,000, and additional 2% for sales beyond that sales volume, how much was his commission for the month?

11. Commission on Cash basis and on Installment Basis

12. Cash Basis the commission is given on cash basis for cash sales. Cash Installmen t If the sale is on an installment basis, companies do not give commission based on sales. Rather, the commission is given based on collection of payment made by the customers.

13. Thank You For Listening Prepared by: Dustin Limbo