3000 x 5 15000 15000 x 10 1500 graduated commission

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\$3,000 x 5 = \$15,000 \$15,000 x 10% = \$1,500
Lesson Objective Compute total graduated commission. Content Vocabulary graduated commission graduated commission Pay based on a different rate of commission for each of several levels of sales.
Graduated Commission Graduated commission offers a different rate of commission for each level of sales. Total Graduated Commission = Sum of Commissions For All Levels of Sales
Graduated Commission Graduated commission structure might be used by a business in order to provide sales staff on commission with a greater incentive to increase sales volume. Business Owner VS Sales Person
Car Sales Example A car company will use graduated commission as an incentive to sell more cars off there lot. Car companies will give there employees a higher commission rate after each level of sales. Commission Percent Level of Sales 4% First \$100,000 6% Next \$150,000 8% Over \$250,00
Example Joe sells appliances at Radio Shack. He receives a graduated commission of 4% on the first \$1,000 of sales, 6% on the next \$2,000 of sales and 8% on sales over \$3,000. Joe’s sales for the past month totaled \$9,840. What was his commission for the month.
Example Levels Sales Commission Rate Commission First \$1,000 \$1,000 4% \$40.00 Next \$2,000 \$2,000 6% \$120.00 Over \$3,000 \$6,840 8% \$547.20 \$9,840 - \$3,000 = \$6,840 \$707.20 is his total commission
Concept Check Lets Practice Concept Check #1 and #2 on page 115 #1 #2
Classwork Textbook Pg. 115 #’s 9
Do Now (collection today) Josie Perez makes \$9.00 an hour. She worked 40 regular hours and 6 hours at time and half. What is her total pay? 9.00 x 40 = \$360 (9.00x1.5) x 6 = \$81 \$360 + \$81= \$441 \$13.50
Graduated Commission Jean sells office supplies. She receives a graduated commission of 4% on her first \$2,000 of sales and 8.5% percent on all sales over \$2,000. Jeans sales for the past week totaled \$3,925. What is her commission for the week? \$2,000 x 4%= \$80 \$3,925 – 2000 = \$1,925 1,925 x 8.5%= \$163.63 80+163.63= \$243.63
Graduated Commission Ian sells sporting goods equipment. Ian earns 5% commission on the first \$6,000, 7.5% on the next \$6,000, and 10% on percent on sales over \$12,000. His total sales for the month are \$14,640. What is his total commission? 6000 x 5%= 300 6000 x 7.5%= 450 \$14,640 - \$12,000= \$2,640 2,640 x 10%= \$264 300+450+264= \$1,014
Classwork Worksheet Handout Skip #’s 2 & 11 # 10 is a challenge problem
Do Now Steven Kellogg, a jet airplane mechanic, works at an hourly rate of \$36 and earns time and half if he works any overtime. Last week he worked 37 hours plus 8 hours overtime. What is his total pay? \$36 x 37= \$1,332.00 (36 x 1.5) x 8= \$432.00 \$1,332.00 + \$432.00 = \$1,764 \$54
Graduated Commission Sales Amount 5% on First 8% on Next 10% on sales Over \$15,000 Total \$18,000 ? ? ? ? \$5,000 x 5% = \$250.00 \$10,000 x 8%= \$800.00 \$18,000 - \$15,000 = \$3,000 \$3,000 x 10% = \$300 250+800+300= \$1,350 Sales Amount 5% on First \$5,000 8% on Next \$10,000 10% on sales Over \$15,000 Total Commission \$18,000 \$250 \$800 \$300 \$1,350
Graduated Commission You are sales manager for Solar World. Your commission consists of 4% of the first \$3,000 in sales and 5% on all sales over 3,000. Your total sale for the week were \$4,115. Find your gross pay? \$3,000 x 4%= \$120.00 \$1,115 x 5%= \$55.75 120.00+55.75= \$175.75 \$4,115-\$3,000=\$1,115
Classwork Textbook Page 116 #’s 5-8 #’s 10-14
Review Pamela sells musical instruments. She earns 6.5% commission on the first \$2,000 in sales, 8% on The next \$3,000 in sales, and 10% over \$5,000 . Find the graduated commission on \$7,368?
Finish Classwork Workbook Pg. 9 #’1-10 Use a separate sheet Show work for full credit When finished work on the Chapter 1 Review packet Test Tomorrow