Your Reward for Hard Work Your paycheck should reflect your gross income. Why is it important to know how to calculate your gross income?

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Your Reward for Hard Work Your paycheck should
reflect your gross income. Why is it important to
know how to calculate your gross income?
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Lesson Objective Calculate straight commission
and determine gross pay.
Content Vocabulary

• commission

commission The amount of money paid for selling a
product or service.
commission rate A specified amount of money paid
for each sale or a percent of the total value of
sales.
straight commission Pay that consists only of
money earned from sales.

• commission rate

• straight commission

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Example 1
Milton Arps sells real estate at a 7½ percent
straight commission. Last week his sales totaled
290,000. What was his commission?
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Example 1 Answer
Step Find the commission. Total Sales
Commission Rate 290,000 7½ 290,000 0.075
21,750
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Example 2
Owen Theil is guaranteed a minimum salary of 250
a week, or 7 percent of his total sales,
depending on whichever is greater. What was his
gross pay for a week in which his total sales
were 3,614?
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Example 2 Answer Step 1
Find the commission. Total Sales Commission
Rate 3,614 7 252.98
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Example 2 Answer Step 2
Find the gross pay. Salary or Commission 250 or
252.98 Gross pay is 252.98 (the greater amount).
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Practice 1
Jermaine Dixon sells electronic equipment. He
receives a straight commission of 6½ percent of
his total sales. What commission will he receive
in a week where his sales total 12,416?
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Practice 1 Answer
807.04
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Practice 2
Ryan OMalley is paid either a commission or by
the hour, whichever is greater. His hourly pay is
8.00 per hour with time and a half for all hours
that exceed 40 hours per week. His commission is
7 percent of his sales. Find his gross pay in a
week in which he worked 48 hours. His total sales
for the week were 6,120.
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Practice 2 Answer
428.40
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Denise Robertson sells office supplies in the
southeast region of the U.S. She earns a straight
commission of 7 of all products purchased. What
is her commission on sales of 5,690.85?

• 375.50
• 398.36
• 411.90
• 450.85

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Last year, Maxwell Ackroyd sold a 1,700,000
apartment complex and earned a 3.5 commission.
He also sold a 5,400,000 shopping center and a
7,300,000 commercial air field and earned a 2.2
commission. What was his total commission?

• 158,900
• 234,500
• 338,900
• 456,000

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ALGEBRA Tonya Solberg sells lawn mowers. She is
guaranteed a minimum salary of 1,500 per month
plus 9.5 commission on total sales. How much in
total sales does Tonya need in order to have a
gross pay for the month of 3,250?

• 17,500.00
• 18,350.75
• 18,421.05
• 19,382.45