Earning Commission
Define what it is to have commission earnings.
Discuss the implications of working strictly on a commission basis.
Would you rather work on a straight commission basis or a salary plus commission basis? Why?
How do you calculate commission?
What jobs can you think of involve commission and what are their rates of commission?
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
- State the commission earned in each case:
- Calculate each value missing from the table.
- A real estate agent earns 2.4% on the sale of a house priced at $89,950. Calculate the amount of the commission.
- Sammy is a sales clerk in a bicycle shop. He's paid $6.25/hour for a 37.5 hour week, plus a commission of 6% of his sales for the week. In one week Sammy's sales were $2319.75.
- Julie is a beauty consultant for Pretty People Cosmetics. She is paid $150/week plus a commission of 38% of sales. Her sales for one 4-week interval are shown in the table. How much did she earn
in that period of time?
- Tatanka sells fertilizer. He is paid $350/week, plus a step commission based on the value of the fertilizer he sells. He receives 5% on sales up to $1000, 10% on sales between $1000 and $2000, and
20% on sales over $2000. Calculate Tatanka's total earnings for 2 weeks with sales as shown in the table.
- Step commission on sales is calculated as follows:
|
AMOUNT OF SALES ($) |
RATE OF COMMISSION (%) |
COMMISSION ($) |
|
500.00 |
10 |
|
|
2000.00 |
40 |
|
|
1500.00 |
5 |
|
|
3000.00 |
8 |
|
|
1453.00 |
15 |
|
|
7216.50 |
2.5 |
|
|
898.20 |
18 |
|
|
17,641.00 |
1.9 |
|
|
2843.92 |
7.6 |
|
RATE OF COMMISSION (%) |
AMOUNT OF SALES ($) |
COMMISSION ($) |
|
4 |
1673.19 |
|
|
10.5 |
3621.95 |
|
|
27 |
412.19 |
|
|
4275.00 |
363.38 |
|
|
18 |
208.12 |
|
|
3584.32 |
1505.41 |
Calculate Sammy's total earnings for the week.
What would Sammy's sales for the week have to be for him to earn $400 in one week?
|
Week Number |
1 |
2 |
3 |
4 |
|
Amount of Sales ($) |
785 |
472 |
1052 |
976 |
| Week Number | 1 | 2 |
| Amount of Sales ($) | 1680 | 2250 |
- 8% on the first $1000
- 12% on the next $2000
- 20% on sales above $3000
Calculate the commission if sales are:
$970.00
$1500.00
$2760.42
$3000.00
$4563.81
- You are offered two sales positions. One offers $500 per month plus 3% commission on all sales over $1000 while the other offers a straight commission of 10%. What amount of sales would you need in one month to earn more selling on straight commission? Which job would you take? Why?
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Laflehe, SK: Wood River Board of Education, 1995.
When you get a regular job your net pay (take-home pay) will be less than your gross pay. This difference is due to deductions. Federal and Provincial laws require that your employer make certain deductions from your cheque, for the government and other reasons.
Types of deductions: Income Tax, Canada Pension Plan, Employment Insurance, Health Insurance, Union Dues, Staff Fees.
Teresa's pay stub might look like this.
|
Statement of Earnings |
|
|
Name: Teresa LeBlanc |
Date: Sept. 28 19 84 |
|
Deductions: |
$ 3.52 $ 5.29 $ 21.25 $______ $______ $______ $______ $______ |
|
Total Deductions: |
$ 30.06 |
|
Net Payment: |
$ 199.94 |
Example 1
Arthur earns $412/week and has net claim code 2. In addition to weekly deductions for CPP, EI, and income tax, he has other deductions as shown.
|
$ 3.00 |
Calculate Arthur's take-home pay.
From tables,
Total |
$ 6.74 |
|
|
Example 2
Pat is paid $5.50/hour for a 37.5 hour week and earns double-time for overtime. Pat has net claim code 1 and other deductions of $14.73. Determine Pat's net pay for a week in which overtime worked was 4.5 hours.
| Calculate Pat's gross wages. |
|
|
|
$206.20 $ 49.50 |
|
| Gross Wages | $ 255.70 | |
| Calculate Pat's deductions. | ||
Total deductions |
$ 3.95 $ 5.87 $ 33.40 $ 14.70 $ 57.92 |
|
Pat's net pay is $255.75 - $57.92, or $197.83
- Elizabeth's weekly gross pay is $380.45. Her net claim code is 3. Her deductions are CPP, EI, and income tax. Calculate her net pay.
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
Exercise
Use the CPP, EI, and income tax tables on pages 444 to 455.
- State the weekly deductions for CPP and EI according to the weekly income shown.
|
|
- State the amount deducted for income tax in each case.
|
Weekly Income |
Net Claim Code |
|
2 |
- In each case, calculate:
- taxable earnings after CPP and EI
- income tax payable.
|
Gross Weekly |
Net Claim Code |
|
4 |
- Helga's weekly gross pay is $380.45. Her net claim code is 3. If she has only the standard deductions for CPP, EI, and income tax, calculate her net pay.
- Jason earns $328 weekly as an assistant in a printing shop and has net claim code 2. Determine Jason's take-home pay if he has other deductions of $8.19 in addition to CPP, EI, and income tax.
In problems 6 to 9, all deductions noted are in addition to CPP, EI, and income tax.
- Selina is paid $ 6.90/hour for a 40 hour week. She has net claim code 4. Her other deductions amount to $6.15. Calculate her net pay for one week.
- Arnold works as an apprentice electrician and is paid $10.50/hour for a 37.5 hour week with overtime paid at time-and-one-half. His net claim code is 1 and his other deductions total $16.84.
Calculate Arnold's take-home pay for a week in which he worked 43 hours.
- As a salesperson for a small business machines firm, Gail is paid $300/week plus a commission of 5% of the value of her sales. In one week, Gail sold $2118 worth of machines. If her net claim
code is 3, and she has other deductions of $19.50, calculate Gail's net pay for the week.
- Sam earns $285/week plus a step commission of 8% on the first $1000 of sales, 10% on the next $500, and 14% on sales over $1500. Sam has deductions for health insurance ($2.19), life insurance ($3.10), charities ($4.00) and Canada Savings Bond ($10.00). If Sam has net claim code 4 and his sales for the week total $1640, calculate his net pay for the week.
|
Ed. Note: |
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
Budget
Answer the following questions:
- What is a budget?
- What is a budget used for?
- Who uses a budget?
- Find examples and graphs of budgets in newspapers and magazines.
Assignment 1
- Calculate the regular pay, overtime rate, overtime pay and gross pay for the following:
|
Job |
Regular Hours |
Regular Hourly Rate |
Regular Pay $ |
Overtime Hours |
Overtime Rate |
Overtime Pay $ |
Gross Pay $ |
|
Shipper/receiver |
40 |
11.50 |
460.00 |
4.75 |
17.25 |
81.94 |
541.94 |
|
Therapist |
40 |
12.45 |
0 |
||||
|
Sheet-metal worker |
38 |
10.78 |
0 |
||||
|
Courier driver |
40 |
8.98 |
5 |
||||
|
Mechanic |
40 |
9.75 |
6 |
||||
|
Inspector |
40 |
10.35 |
8 |
||||
|
Machinist |
40 |
12.95 |
2.25 |
||||
|
Legal Secretary |
40 |
10.45 |
15 |
||||
|
Accountant |
25 |
12.75 |
3.5 |
||||
|
Graphic artist |
40 |
8.93 |
6.75 |
||||
|
Baker |
40 |
11.39 |
5.25 |
- Calculate the gross pay for each of the following:
Name
Hourly Rate $
Hours Worked
Tips Amount $
% of Tips Kept
Josh Freed
5.75
40
250.00
100%
Celeste Barry
7.80
25
115.00
100%
George Richter
6.15
20
82.00
80%
Vanessa Varouk
6.40
24
104.00
75%
Danny Sabot
8.35
40
212.00
85%
Louise Whitney
7.90
16.5
48.00
95%
Leslie Howick
6.10
34.5
143.00
90%
- Jane works at the recreation centre for 8 hours each Saturday and Sunday. She is paid at the rate of $7.85/hour. during the week she referees 4 games of basketball a week. If the rate per game
is $25.00, what is her total pay in a week?
- Bryce busses tables at a local restaurant. He gets 25% of the waiter's tips in addition to $5.80/hour. The waiter received $255.00 in tips during the 16 hours which Bryce worked. What were
Bryce's gross earnings?
- Because of a snowstorm in Saskatoon, Ron was unable to do his regular daily garbage pickup. In order to get back on schedule, he had to work both routes the next day. After 8 hours he is paid double-time. It took Ron 15 hours to complete the two routes. His regular wage is $12.90/hour. Calculate Ron's gross earnings for the day.
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
Assignment 2
- In one week, Kathy sold the following cosmetics and personal items. The commission earned on each is shown in the table below. What were her weekly earnings (to the nearest cent)?
- Calculate the weekly gross pay for each of the following workers:
|
Item (# of items) |
Price $ |
Rate of Commission % |
|
Night Cream (12) |
8.50 |
45 |
|
Cleansing Cream (12) |
6.75 |
45 |
|
Eyeshadow (16) |
5.25 |
43 |
|
Mascara (22) |
4.79 |
43 |
|
Blush (22) |
4.29 |
37 |
|
Moisturizer (16) |
6.80 |
25 |
|
Lip Gloss (27) |
2.95 |
41 |
|
Men's Cologne (5) |
12.35 |
33 |
|
Air Freshener (8) |
3.95 |
25 |
|
Cosmetics Bag (3) |
16.55 |
45 |
Name
Weekly Sales $
Commission Rate %
Weekly Salary $
Kerry Saunders
11050.00
1.5
250.00
Mark Danover
10218.00
1.5
255.00
Chris Mendel
13562.00
2
275.00
Ron Brintner
11877.00
2
230.00
Patrick McQuigley
14415.00
1.5
195.00
Nathan Norish
12970.00
1.5
225.00
Rebecca Linate
9957.00
3
225.00
Vera Johannsen
11133.00
2
230.00
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
Assignment 3
- What was the percentage of gross pay for EI in 1996?
- What was the percentage of gross pay for CPP in 1996?
- What is the difference between gross and net pay?
- How is our income tax a progressive tax?
- Calculate the net pay for the following earnings in Saskatchewan.
|
Gross Pay |
EI (2.95%) $ |
CPP (2.8%) $ |
Income Tax $ |
Net Pay $ |
|
|
a) |
$467.89/week |
||||
|
b) |
$987.78/week |
||||
|
c) |
$1,200.00/week |
||||
|
d) |
$5,500.00/month |
||||
|
e) |
$24,356.98/year |
||||
|
f) |
$35,000.00/year |
- Calculate the required deductions and the net pay for each of the following earnings in Saskatchewan.
|
Gross Pay |
EI (2.95%) $ |
CPP (2.8%) $ |
Income Tax $ |
Other Deductions $ |
Net Pay $ |
|
|
a) |
$567.89/week |
$0.00 |
||||
|
b) |
$907.78/week |
$78.00 |
||||
|
c) |
$1,250.00/week |
$0.00 |
||||
|
d) |
$5,000.00/month |
$251.42 |
||||
|
e) |
$27,356.98/year |
$0.00 |
||||
|
f) |
$50,000.00/year |
$1,266.20 |
- Calculate the basic deductions and net pay of a steel worker who earns $37,200.00 per year in Saskatchewan.
- What percent is the steel worker's net pay of the gross pay?
- What percent is the steel worker's deductions of a the gross pay?
Source: Morgan, Roger and Walter Wood. Mathematics 10 - Supplementary Materials. Lafleche, SK: Wood River Board of Education, 1995.
Teacher Strategies and Activities
Lesson Plans
|
Content Area: |
Knowledge __ x __ |
Skills __ x __ |
|
Attitude __ x __ |
Objective:
- To share information gathered regarding consumerism.
Activity:
- Students will informally share pros and cons of consumer math assignment. They will present one positive and one negative idea from the assignment. They may share their presentations.
Number of Students: 22
Location: Classroom