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Commission and other income

Calculate earnings from flat-rate and sliding-scale commission, piecework income, and combined retainer plus commission arrangements; compare commission-based income with a salaried alternative.

Worked examples

Flat-rate commission on total sales

Straightforward

Problem

A real estate agent earns a commission of 2.2%2.2\% on all property sales. In one month they sold properties totalling $1 350 000\$1\,350\,000. Calculate the agent's commission for the month.

Sliding-scale commission across three brackets

Moderate

Problem

A salesperson earns commission on a sliding scale: 2%2\% on the first $20 000\$20\,000 of monthly sales, 4%4\% on the next $30 000\$30\,000, and 6%6\% on any sales above $50 000\$50\,000. In June they achieved sales of $75 000\$75\,000. Calculate their total commission.

Retainer plus sliding-scale commission compared with a salary

Challenging

Problem

Daniela works as a sales consultant. She receives a monthly retainer of $1 800\$1\,800 plus commission at 2%2\% on the first $30 000\$30\,000 of monthly sales and 4.5%4.5\% on any sales above $30 000\$30\,000. In a typical month, Daniela achieves sales of $55 000\$55\,000.

(a) Calculate Daniela's typical monthly income.

(b) A competitor offers Daniela a salaried position paying $48 000\$48\,000 per year. Which option pays more annually, and by how much?

Practise

Q1·Straightforward
A car salesperson earns a flat commission of 3.5%3.5\% on all sales. In one month they sold cars worth $42 000\$42\,000. Calculate their commission for the month.
Q2·Straightforward
An insurance agent earns a commission of 4%4\% on all policies sold. She sells policies totalling $65 000\$65\,000 in premiums this month. Calculate her commission.
Q3·Straightforward
A travel agent earns 2.5%2.5\% commission on the value of all bookings they process. Last month they processed bookings worth $180 000\$180\,000. What was their commission?
Q4·Straightforward
A business earns 6%6\% commission on advertising contracts it brokers. In March, it brokered contracts worth $28 500\$28\,500. Calculate the commission earned.
Q5·Moderate
A salesperson earns commission on a sliding scale: 2%2\% on the first $20 000\$20\,000 of monthly sales and 4%4\% on any sales above $20 000\$20\,000. In April, they achieved sales of $35 000\$35\,000. Calculate their total commission.
Q6·Moderate
A wholesale agent earns commission on a three-tier sliding scale: 3%3\% on the first $30 000\$30\,000, 5%5\% on the next $50 000\$50\,000, and 7%7\% on any sales above $80 000\$80\,000. Calculate the commission on monthly sales of $90 000\$90\,000.
Q7·Moderate
A factory worker is paid $4.20\$4.20 per garment assembled. In one week they assemble 120120 garments. Calculate their weekly piecework pay.
Q8·Moderate
A data-entry contractor is paid $2.80\$2.80 per completed form. In one week they process 350350 forms. What is their weekly income?
Q9·Challenging
A sales consultant receives a monthly retainer of $1 500\$1\,500 plus 3%3\% commission on all monthly sales. In a typical month, they achieve sales of $45 000\$45\,000. A salaried position at a competitor pays $35 000\$35\,000 per year. By how many dollars does the salary exceed the annual commission-based income? Give your answer as a positive number.
Q10·Challenging
Renee receives a monthly retainer of $800\$800 plus sliding-scale commission: 2%2\% on the first $40 000\$40\,000 of monthly sales and 5%5\% on any sales above $40 000\$40\,000. Her typical monthly sales are $60 000\$60\,000. A salaried role pays $30 000\$30\,000 per year. By how many dollars does Renee's annual commission-based income exceed the salary?
Q11·Challenging
A sales representative receives an annual retainer of $24 000\$24\,000 plus sliding-scale commission: 1.5%1.5\% on the first $100 000\$100\,000 of annual sales and 3%3\% on any sales above $100 000\$100\,000. Their annual sales are $250 000\$250\,000. A salaried alternative pays $32 000\$32\,000 per year. By how many dollars does the salary exceed the commission-based total income?
Q12·Challenging
Marco receives a monthly retainer of $2 000\$2\,000 plus 4%4\% commission on any monthly sales exceeding $25 000\$25\,000. His typical monthly sales are $70 000\$70\,000. A salaried position pays $44 000\$44\,000 per year. By how many dollars does Marco's annual commission-based income exceed the salary?