A commission is an amount of money that a salesperson earns by making a sale.

Usually the rate of commission is given as a percent.
Sometimes a salesperson's only earnings are the commission amounts generated by making a sale.  When that is the case it is easy to understand why some salespeople seem very "pushy". After all,
their entire income is based on their ability to get us to buy what they are selling!
Now let's look at how to calculate a "commission".

Example:
Jenna is a salesperson at an electronics store.  She earns
6 1/2% commission on her total sales.  What would be her commission if she sold a $2950 plasma television set?
Solution:
Step 1:  Change the percent number to a decimal number
6 1/2% = .065
Step 2:  Multiply the sales total by the decimal number
(2950) x (.065)
$191.75
Step 3:  If necessary, round the product to the nearest hundredths place.
(That is not necessary in this example)
Jenna earned $191.75 commission
on the sale of the television.
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Another example....
Randy is a used car salesman who earns a 4 1/4%
commission on every vehicle he sells.  One day he sold a car for $9995.  What was the amount of his commission?
Solution:
Step 1: Change the percent number to a decimal number
4 1/4% = .0425
Step 2: Multiply the sales total by the decimal number
(9995) x (.0425)
424.7875
Step 3:  Round the product to the nearest hundredths place
424.7875 = 424.79
Randy's commission is $424.79
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One last example:
Stella works as a salesperson in a jewelry store. She is paid an 12 1/2% commission on her
 sales.  One very busy day she made the following 4 sales;
A ladies watch:  $275.95
A diamond necklace:  $599.99
A pair of cufflinks:  $125
A gold bracelet:  $399.25
What was Stella's commission on her total sales?
Solution:
Step 1:  Total her 4 sales
(275.95)+(599.99)+(125)+(399.25) = 1400.19
Step 2:  Change the percent number to a decimal number
12 1/2% = .125
Step 3:  Multiply the total sales by the decimal number
(1400.19) x (.125)
175.02375
Step 4:  Round the product to the nearest hundredths place
175.02375 = 175.02
$175.02
Stella earned a $175.02 commission on her sales.
 

 For some more practice on your own....
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