CALCULATING A COMMISSION LESSON PLAN
What is a commission?
A commission is an amount of money that someone is paid when they sell something. It is usually a percent of the sale that has been made. Many people work “on commission.” Sales persons and real estate agents often work on commission.
How can I calculate a commission?
Calculating a commission involves using percentages and mathematics. Usually, you will hear about a percent that a person will make for a commission. Then you take the sale price or the total sales and use the percentage to calculate the commission.
Let’s look at an example to better understand this:
Jeff works as a real estate agent. He has just sold a house that was $230,000. If Jeff makes a 3% commission, how much money did he make when he sold the home?
To figure this out, we are going to need to multiply. We want to find a percent of a number. When we find a percent of a number, it means multiplication. Our key word is “of”. When you see the word “of” in a problem it means multiply.
The first thing that we need to do is to convert the percentage to a decimal.
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