Topic Content:
- Commission
Commission is paid to a selling agent for selling an item. Commission-based payment is common in certain positions—sales in particular—where bringing in money is an important part of the job.
To motivate a selling agent, who can be an employee of your furniture company, you can promise him/her a portion of the sale, for example, 5%.
So if the selling agent makes a sale of ₦35,000 his/her commission will be \( \frac{5}{100} \scriptsize \: \times \: ₦35,000 \\ \scriptsize = ₦1750 \)
Example 1.8.1:
A sales representative works for an electronics company. She gets a commission of 16k in the naira. In one week she sells four memory cards at ₦6 500 each and 6 earphones at ₦9 500 each. Calculate her commission.
Solution
Total sales = 4 × ₦6 500 + 6 × ₦9 500
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