# Commission and Retainer

Salespeople are paid a commission (a percentage of sales) or a retainer (a fixed weekly income). The more sales that a salesperson makes, the greater is their income.

Useful rules are:

• Commission = Percent Commission × Sales
• Total Income = Commission + Retainer
• Sales = Commission × 100 ÷ Percent Commission

## Example One - Commission

Salesman Sam earns 5% of whatever he sells. If he sells goods worth \$4000, what commission does he receive?

Commission
= Percent Commission × Sales
= 5% of \$4000
= 5100 × \$4000
= \$200

## Example Two - Commission and Retainer

Salesman Sue earns a retainer of \$700 per week in addition to a commission of 3%. How much does she earn for selling goods worth \$20000.

Commission
= Percent Commission × Sales
= 3% × \$20000
= \$606

Total Income
= Commission + Retainer
= \$600 + \$700
= \$1300

## Example Three - Finding the Original Sales

A salesperson works on a commission of 5% only. If she earns \$400 commission, what were the original sales?