Commission and Discounts

Understanding Commission

A commission is a fee paid to a person or company for conducting a transaction. It is often a percentage of the sales value.

For example, if a salesperson earns a 10% commission on sales, they receive 10% of the total sales amount as their earnings.

Calculating Commission

• Identify the total sales amount.
• Determine the commission rate (as a percentage).
• Calculate the commission using the formula: $$\text{Commission} = \left( \frac{\text{Commission Rate}}{100} \right) \times \text{Total Sales}$$

 

Understanding Discounts

A discount is a reduction in the price of a product or service. It is usually given as a percentage of the original price.

For example, a 20% discount on a product means the price is reduced by 20%.

Calculating Discounts

• Identify the original price of the item.
• Determine the discount rate (as a percentage).
• Calculate the discount using the formula: $$\text{Discount} = \left( \frac{\text{Discount Rate}}{100} \right) \times \text{Original Price}$$
• Find the sale price by subtracting the discount from the original price: $$\text{Sale Price} = \text{Original Price} - \text{Discount}$$

 

Examples

Example 1: Calculating Commission

 

Example 2: Calculating Discounts