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What is the total monthly earnings of a retail sales associate who sells $20,000 worth of merchandise while receiving a fixed salary of $2,500 and a 3% commission?
What is the total monthly earnings of a retail sales associate who sells $20,000 worth of merchandise while receiving a fixed salary of $2,500 and a 3% commission?
How is the commission calculated for a freelance graphic designer at ABC Company?
How is the commission calculated for a freelance graphic designer at ABC Company?
What is the commission earned by a tech company salesperson who sells $180,000, given that they have a quarterly sales target of $150,000 and receive a 10% commission on sales beyond the target?
What is the commission earned by a tech company salesperson who sells $180,000, given that they have a quarterly sales target of $150,000 and receive a 10% commission on sales beyond the target?
When does a salesperson in a cash basis commission structure receive their commission?
When does a salesperson in a cash basis commission structure receive their commission?
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What total commission does Samuel earn for selling 10 cellphones costing ₱18,000 each at a 6.1% commission rate?
What total commission does Samuel earn for selling 10 cellphones costing ₱18,000 each at a 6.1% commission rate?
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If Linda sells 2 cars each week for 4 weeks at a price of $30,000 per car with a 4% commission, what is her total commission?
If Linda sells 2 cars each week for 4 weeks at a price of $30,000 per car with a 4% commission, what is her total commission?
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What is a key characteristic of commission on an installment basis?
What is a key characteristic of commission on an installment basis?
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What would be the commission for a salesperson who sells a product for $50,000 with a 5% commission rate?
What would be the commission for a salesperson who sells a product for $50,000 with a 5% commission rate?
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What is the total commission Mike earns from selling 10 cellphones over the 6 months?
What is the total commission Mike earns from selling 10 cellphones over the 6 months?
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What amount does Mike receive as commission for the second month?
What amount does Mike receive as commission for the second month?
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In the last month, how much does Mike earn as a commission?
In the last month, how much does Mike earn as a commission?
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What commission rate does Samantha earn on sales up to ₱100,000?
What commission rate does Samantha earn on sales up to ₱100,000?
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How much commission does Samantha make on sales above ₱100,000 on a total sale of ₱150,000?
How much commission does Samantha make on sales above ₱100,000 on a total sale of ₱150,000?
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What is James's total commission on selling a property priced at ₱6,000,000?
What is James's total commission on selling a property priced at ₱6,000,000?
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During the first month, what total commission does Mike generate from selling 10 cellphones?
During the first month, what total commission does Mike generate from selling 10 cellphones?
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What is the commission structure for Mike's earnings over the 6 months?
What is the commission structure for Mike's earnings over the 6 months?
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What is the primary characteristic of a straight commission?
What is the primary characteristic of a straight commission?
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If a salesperson earns 20% commission on sales and sells goods worth ₱50,000, what is the commission earned?
If a salesperson earns 20% commission on sales and sells goods worth ₱50,000, what is the commission earned?
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What does the salary plus commission structure depend on?
What does the salary plus commission structure depend on?
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How is the commission calculated for a sale of ₱95,000 with a 4% commission rate?
How is the commission calculated for a sale of ₱95,000 with a 4% commission rate?
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If Joshua's sales for the week total ₱26,000 and he earns 10% commission on sales above ₱20,000, what is his commission?
If Joshua's sales for the week total ₱26,000 and he earns 10% commission on sales above ₱20,000, what is his commission?
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Which of the following describes a quota commission?
Which of the following describes a quota commission?
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What calculation is necessary to determine the gross pay when utilizing a salary plus commission structure?
What calculation is necessary to determine the gross pay when utilizing a salary plus commission structure?
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In a salary plus commission system, if a salesperson does not exceed the sales threshold, what will affect their earnings?
In a salary plus commission system, if a salesperson does not exceed the sales threshold, what will affect their earnings?
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What is the total commission earned by Charles if he sells a total of ₱60,000?
What is the total commission earned by Charles if he sells a total of ₱60,000?
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How much commission does the real estate agency receive on a sale of ₱2,800,000?
How much commission does the real estate agency receive on a sale of ₱2,800,000?
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What is the gross pay of the saleswoman who sold ₱26,575 in merchandise?
What is the gross pay of the saleswoman who sold ₱26,575 in merchandise?
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Which commission structure involves an increasing percentage based on the amount sold?
Which commission structure involves an increasing percentage based on the amount sold?
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If a sales representative sells ₱130,000 in one month, what would be their total commission?
If a sales representative sells ₱130,000 in one month, what would be their total commission?
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What would be the commission for the saleswoman if she only sold ₱4,500 worth of merchandise?
What would be the commission for the saleswoman if she only sold ₱4,500 worth of merchandise?
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Which statement about the graduated commission structure is true?
Which statement about the graduated commission structure is true?
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What is the basis for calculating the commission in a quota-based system?
What is the basis for calculating the commission in a quota-based system?
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Study Notes
Commission
- A fee businesses pay salespersons (agents) in exchange for services
- Commission can be based on a flat arrangement or a percentage of the revenue generated by a salesperson.
Types of Commission
- Straight Commission: A salesperson's income is solely based on a percentage of their sales.
- Salary Plus Commission: A salesperson receives a fixed salary plus a percentage of sales.
- Graduated Commission: Commission rates increase as sales volume increases, with different percentage rates for different sales tiers.
- Quota Commission: Salespeople earn commission only on sales exceeding a predetermined quota.
Computing Commissions on Cash Basis
- Commissions are paid immediately after a customer makes a full payment for the product or service.
- Straight commission calculations are used here, where the percentage of the sale is the commission.
Commission on Installment Basis
- Commissions are paid in stages, aligned with customer payments.
- Commission rates may change based on installment number.
Example Applications
-
Samantha's Commission:
- Commission up to ₱100,000: ₱100,000 x 4% = ₱4,000
- Commission above ₱100,000: (₱150,000 - ₱100,000) x 7% = ₱3,500
- Total Salary: ₱25,000 (base) + ₱4,000 + ₱3,500 = ₱32,500
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James's Commission:
- Commission on sales up to ₱5,000,000: 2.5%
- Additional commission on sales above ₱5,000,000: 1%
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Description
This quiz covers various types of sales commissions, including straight, salary plus, graduated, and quota commission. You will also learn about computing commissions on a cash and installment basis. Test your knowledge on how commissions influence sales strategies and earnings.
