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COMMISSION

Unit Overview

In this unit you will learn how to compute commission on sales, commission and regular pay, piecework pay, and tips.

Commission

In some jobs, a person’s pay depends upon the amount of goods or services the person sells. The salesperson receives a commission, or specified amount of money for sales made during a pay period. Commission is usually expressed as a percentage of sales and has the purpose of encouraging salespeople to sell more goods or services. The percent of total sales paid as commission is the commission rate.

Salary plus Commission 

Some people receive a fixed salary in addition to commission. The following example demonstrates how to find the total pay of someone who receives a fixed salary plus a commission on goods sold.

Piecework 

Some people are paid by piecework. Piecework is paid according to the number of pieces or units of work they complete. For example, a garment worker may be paid by a rate of the number of buttons they sew on a shirt.

Tips 

Some workers receive extra money from people who appreciate good service. This money is called a tip. Examples of workers who are tipped include servers, cab drivers, porters, and hairstylists.

Below are additional educational resources and activities for this unit.

Unit 3 Calculating Wages Worksheet

Unit 3 Types of Payment Worksheet