Other industries that use commissions as sales incentives include: travel agents, retail employees, pharmaceutical sales reps and computer sales reps. Summary: Commission is an amount of money paid to an employee or company as an incentive to sell more. The Jones family will pay their insurance broker a commission of $1,750.00.

How much money will they have after they pay their real estate agent a 5% commission? If you're seeing this message, it means we're having trouble loading external resources on our website. See some of our other supported math practice problems. Research has witnessed instances where the markup problems asks for the markup and the markup price, but no such distinction on the commission problems yet. Practice solving percent word problems involving price discounts, price markups, and commission fees. Next lesson. To download/print, click on pop-out icon or print icon to worksheet to print or download.

Example 4: A car salesman earns a 3% commission on sales. How much will they pay the insurance broker if she charges a 0.5% commission? The Stettnisch family's house was sold for $300,000. A straight commission is a percentage of sales.

The real estate agent was hired by the Stettnisch family to sell their house for a 5% sales commission.

Practice: Discount, markup, and commission word problems. Our mission is to provide a free, world-class education to anyone, anywhere.

Example 2: A stock broker receives a commission of 11% for selling annuities to her clients. After you click ENTER, a message will appear in the RESULTS BOX to indicate whether your answer is correct or incorrect. However, in this lesson we will compute straight commission only. Usually, you will hear about a percent that a person will make for a commission. Take your favorite fandoms with you and never miss a beat. Calculating a commission involves using percentages and mathematics. Let's look at some more examples of straight commission.

Answer: The stock broker will earn $5,500.00. The real estate agent was hired by the Stettnisch family to sell their house for a 5% sales Up Next. Solve each problem below by entering a dollar amount with cents. Example 3: The Jones family purchases $350,000 in life insurance from an insurance broker. Find the commission: This problem provides a sales situation where an employee is partially paid on commission. This exercise concentrates on business applications of percentage, specifically markup and commission. A stock broker receives a commission of 11% for selling annuities to her clients. Directions: Each problem below involves straight commission.

If he sells a car for $27,990, how much commission will he earn? Analysis: Commission is paid to an employee or company as an incentive to sell more. Percent word problem: magic club.