Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 110

COMMISSION WITH RETURNS Find the gross earnings for each of this salespeople. (See Examples.)
EXAMPLE
Determining Earnings Using Commission

A real estate broker charges a 6% commission. Find the commission on a house selling for $268,500.
SOLUTION
The commission is 6% × $268,500 =.06 × $ 268,500 = $16,110. The 6% is called the commission rate, or the rate of commission.
EXAMPLE
Subtracting Returns When Using Commission
Amanda Roach, a food-supplements sales representative, had sales of $10,230 one month, with returns and allowances of $1120. If her commission rate is 12%, find her gross earnings.
SOLUTION
The returns and allowances must first be subtracted from gross sales. Then multiply the difference, net sales, by the commission rate.
Gross earnings = ($10,230 gross sales - $1120 returns and allowances) × 12%
= $9110 net sales ×.12
= $1093.20 gross earnings