IncomeCommission

Income is the amount of money which comes to a person or organisation.

Part ofApplications of MathsManaging finance

Commission

Salespeople are paid commission.

The more they sell, the more they earn.

Example

Jim earns a basic pay of \(\pounds80\) per week. He gets commission of \(4\%\) on his sales. Find his pay in a week when he has sales of \(\pounds2500\).

Answer

Commission \(= 4\%\) of \(\pounds2500 = \pounds100\)

Pay \(= \pounds80 + \pounds100 = \pounds180\)

Question

Anne earns commission of \(2.5\%\) on all sales over \(\pounds50\,000\) per month. Find her commission in a month when her sales are \(\pounds125\,000\).