- Total Commission:
- What does Comission mean?
- A commission is a fee that a business pays to a salesperson in exchange for the services in either facilitating or completing a sale.
- Commission = Sale Amount × Commission Rate
Ms. Jane is to earn 4% of all sales, less any returned merchandise. If she reaches $60,000 in sales by the end of the quarter, the commission retroactively changes to 5%. In the first quarter, she has $61,500 of sales, less $500 of returned merchandise. Thus, the calculation of her commission for the entire quarter is:-
Therefore, $61,000 total sales x 5% Commission rate = $3,050
- May 18, 2018
- Tool Launched