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Questions and Answers
What is the primary characteristic of straight commission?
What is the primary characteristic of straight commission?
How much commission does Mike earn if he sells appliances totaling ₱20,500 at a 20% commission rate?
How much commission does Mike earn if he sells appliances totaling ₱20,500 at a 20% commission rate?
In a salary plus commission structure, what does a salesperson receive in addition to their base salary?
In a salary plus commission structure, what does a salesperson receive in addition to their base salary?
What will be the commission for a salesman who sells a car worth ₱95,000 at a 4% commission rate?
What will be the commission for a salesman who sells a car worth ₱95,000 at a 4% commission rate?
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If a salesperson has a base salary of ₱2,000 and earns 10% commission on sales exceeding ₱20,000, how much will they earn if they sell ₱26,000 worth of goods?
If a salesperson has a base salary of ₱2,000 and earns 10% commission on sales exceeding ₱20,000, how much will they earn if they sell ₱26,000 worth of goods?
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What type of commission involves both a basic salary and a commission for performance?
What type of commission involves both a basic salary and a commission for performance?
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What is the commission rate if a salesperson earns ₱600 from sales above ₱20,000 and these sales amount to ₱26,000?
What is the commission rate if a salesperson earns ₱600 from sales above ₱20,000 and these sales amount to ₱26,000?
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What does a quota commission typically involve?
What does a quota commission typically involve?
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What is the total monthly earnings of a retail sales associate who sells $20,000 worth of merchandise at a commission rate of 3%?
What is the total monthly earnings of a retail sales associate who sells $20,000 worth of merchandise at a commission rate of 3%?
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How much does a freelance graphic designer earn from a project worth $10,000 if they earn 20% of the contract value?
How much does a freelance graphic designer earn from a project worth $10,000 if they earn 20% of the contract value?
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What is the commission earned by a salesperson who surpasses their quarterly sales target of $150,000 by selling $180,000?
What is the commission earned by a salesperson who surpasses their quarterly sales target of $150,000 by selling $180,000?
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What type of commission system requires the salesperson to receive payment only after the customer has paid for their purchase?
What type of commission system requires the salesperson to receive payment only after the customer has paid for their purchase?
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How much commission does a salesperson earn if they sell 10 cellphones costing ₱18,000 each at a commission rate of 6.1%?
How much commission does a salesperson earn if they sell 10 cellphones costing ₱18,000 each at a commission rate of 6.1%?
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If Linda sells 2 cars each week at $30,000 with a 4% commission, what is her total commission after 4 weeks?
If Linda sells 2 cars each week at $30,000 with a 4% commission, what is her total commission after 4 weeks?
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What happens to a salesperson's earnings if they do not bring in any new projects in a month?
What happens to a salesperson's earnings if they do not bring in any new projects in a month?
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In what scenario does a salesperson earn commission based on installment payments?
In what scenario does a salesperson earn commission based on installment payments?
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How much commission did Charles earn for his first ₱20,000 in sales?
How much commission did Charles earn for his first ₱20,000 in sales?
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What was the total gross pay for the saleswoman who sold ₱26,575 worth of merchandise?
What was the total gross pay for the saleswoman who sold ₱26,575 worth of merchandise?
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What is the total commission for the real estate agency on a sale of ₱2,800,000?
What is the total commission for the real estate agency on a sale of ₱2,800,000?
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What percentage commission does the pharmaceutical sales representative earn for sales over $100,000?
What percentage commission does the pharmaceutical sales representative earn for sales over $100,000?
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If the saleswoman sold ₱6,000 worth of merchandise, what would her additional commission be?
If the saleswoman sold ₱6,000 worth of merchandise, what would her additional commission be?
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What calculation method gives the total commission for a sale exceeding ₱1,000,000 in a one-time payment structure?
What calculation method gives the total commission for a sale exceeding ₱1,000,000 in a one-time payment structure?
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What is the commission rate for sales between ₱20,000 and ₱50,000 as seen in Charles's compensation structure?
What is the commission rate for sales between ₱20,000 and ₱50,000 as seen in Charles's compensation structure?
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How is quota-based commission structured, according to the provided content?
How is quota-based commission structured, according to the provided content?
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What is the total commission Mike receives over the six months for selling 10 cellphones?
What is the total commission Mike receives over the six months for selling 10 cellphones?
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What is the commission percentage for Mike during the first month?
What is the commission percentage for Mike during the first month?
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How much commission does Mike earn in the fifth month?
How much commission does Mike earn in the fifth month?
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What commission rate does Mike earn in the third month?
What commission rate does Mike earn in the third month?
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Samantha's base monthly salary is ₱25,000. If she sells jewelry worth ₱150,000, what is her commission on sales up to ₱100,000?
Samantha's base monthly salary is ₱25,000. If she sells jewelry worth ₱150,000, what is her commission on sales up to ₱100,000?
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What is the total commission Samantha earns on the sales above ₱100,000 if she sold ₱150,000 worth of jewelry?
What is the total commission Samantha earns on the sales above ₱100,000 if she sold ₱150,000 worth of jewelry?
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What is the total salary for Samantha in a month, including her base salary and total commissions from her jewelry sales?
What is the total salary for Samantha in a month, including her base salary and total commissions from her jewelry sales?
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What additional commission does James earn on properties that sell for more than ₱5,000,000?
What additional commission does James earn on properties that sell for more than ₱5,000,000?
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Study Notes
Types of Commission
- Straight Commission: A salesperson earns a percentage of their total sales.
- Salary Plus Commission: A salesperson earns a fixed salary plus a percentage of their sales.
- Graduated Commission: A salesperson earns a higher commission rate on sales that exceed certain thresholds.
- Quota Commission: A salesperson earns a commission on sales above a predetermined quota.
Commission on Cash Basis
- Commission is paid when the customer pays in full for the product or service.
Commission on Installment Basis
- Commission is paid in stages, aligning with the customer's installment payments.
Examples
-
Mike sells 10 cellphones for ₱18,000 each on an installment plan with 6 equal payments over 6 months.
- Mike earns a 2% commission on the first month's payment for each phone.
- The commission decreases by 0.30% for each subsequent month, based on the outstanding balance.
- Mike's total commission for the 6-month period is calculated by summing the commission earned each month.
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Samantha sells ₱150,000 worth of jewelry and earns a 4% commission on sales up to ₱100,000 and a 7% commission on sales above ₱100,000.
- Her commission on sales up to ₱100,000 is ₱4,000.
- Her commission on sales above ₱100,000 is ₱3,500.
- Her total salary for the month, including her base salary and commissions, is ₱32,500.
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James sells a property for ₱7,000,000 and earns a 2.5% commission on the entire sale and an additional 1% commission on the portion of the sale above ₱5,000,000.
- His commission on the first ₱5,000,000 is ₱125,000.
- His additional commission on the remaining ₱2,000,000 is ₱20,000.
- His total commission is ₱145,000.
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Description
This quiz explores various types of sales commission structures, including straight commission, salary plus commission, graduated commission, and quota commission. It also covers payment methods for commissions, such as cash and installment basis, along with practical examples to illustrate these concepts.
