Graduated Commission

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Graduated Commission
Section 1-7
Presented by M J Lund
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Section 1-7 Objective

• Compute
• total graduated commission

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Key Words to Know
graduated commission (p. 106) Pay in which the
commission rate is different for different levels
of sales.
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Formula
Total Graduated Sum of Commissions
Commission for All Levels of Sales
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Example 1
Irene Morris sells appliances at Twin City Sales.
She receives a graduated commission as
shown 4 First 1,000 6 Next 2,000 8 Over
3,000
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Example 1 (cont.)
Irenes sales for the past month totaled 9,840.
What is her commission for the month?
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Example 1 Answer
Step Find the sum of commission for all levels
of sales. Sales x Commission Rate First
1,000 1,000 x 4 40.00 Next
2,000 2,000 x 6 120.00 Over 3,000
(9,840 3,000) x 8 6,840 x 8
547.20 Total Graduated Commission 707.20
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Practice 1
Pamela Miller sells musical instruments. She
earns 6.5 percent commission on the first 2,000,
8 percent on the next 3,000, and 10 percent on
sales over 5,000. Find the graduated commission
on 7,368.
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Practice 1 Answer
606.80
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Practice 2
Bob Elliott sells lumber. He earns 9 percent
commission on the first 25,000, 11 percent
commission on the next 30,000, and 15 percent on
sales over 55,000. Find the graduated
commission on monthly sales of 56,575.
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Practice 2 Answer
5,786.25
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Hmk pg 107 3-9