“Senior High School

Demonstration Teaching
Region IV-A Calabarzon”
Jubailyn V. Villegas
Tanauan School of Fisheries
SHS –ABM Teacher II
 Business Math Prayer
Heavenly Father,
Thank you for ADDING joy in our lives.
Thank you for SUBTRACTING our sorrows and sadness and DIVIDING your
thoughts to one of us.
Thank you for MULTIPLYING your love to us without PERIODIC PAYMENT.
Lord we are like money that has no CASH VALUE without you, you are our
everything.
Forgive us oh LORD for all that we’ve done in thoughts, words and actions not
only ANNUALLY, MONTHLY but also DAILY.
Amen.
 Human Knot!
 Learners will be divided into 2 groups
 Each group will form a circle facing each
other
 Group mates will connect their hands
together in a crisscross position.
 Each team should should figure out how
to untangle the knot (crisscross position)
without breaking the chain of hands
 First group to finish wins.
 Recall: What have you
learned?
Buying and Selling
OMark Up
OMark Down
OMark-on
 Activity:
Name the
different
occupations how
employees are
paid.
What is his occupation? Provide his job
description.
Answer: Real State Agent

Impressive!
What is his occupation? Provide his job
description.
Answer: Stock Broker

Excellent!
What is his occupation? Provide his job
description.
Answer: Insurance Agent

Brilliant!
What is his occupation? Provide his job
description.
Answer: Bill Collector

Superb!
What is his occupation? Provide his job
description.
Answer: Sales Person

Amazing!
 Objectives:
At the end of the session you will
be able to:
 Identify the different types of
commission;
 realize the use of different types of
commission in a business;
 compute and give examples of
straight commission; salary plus
commission and graduated
commission.
 Commission
O It is a fee that a business pays to a
salesperson (agent) in exchange for
his services in facilitating,
supervising, or completing a sale.
O May be based on a flat arrangement
or as a percentage of the revenue
generated by a salesperson.
“Commission”
Three different types of commission:

1. Straight Commission,
also called (revenue
commission)
2. Salary plus
Commission
3. Graduated Commission
Straight Commission, also called
(revenue commission) .
O When a sales agent is paid on a
percentage of sales only. (This is
very profitable if you are selling high-
ticket items.)
Examples:
Sales Agent (Car), Real State Agent
Straight Commission
OPros: The amount of
income you earn is
entirely in your control.
OCons: Pay is not tied to
hours worked, if you
cannot close sales, you
will not earn money.
 Problem Solving
Bill works as a car salesman and earns
1.5 % commission on all sales. One
month his sales were P300, 000.
Determine his pay.

Commission Amount = Percentage

*sales
= 0.015 x 300,000
= 45,000
 Let Us Practice!

Sales Commissio Commissi

n Rate on
500,00 14% ?
0
 Answer:

P70,000
Solution: ( 500,000 x
.14)
 Salary plus Commission

O a commission in which a salesperson

gets his basic salary and a
percentage of whatever sales he
makes.
Examples:
Sales Representative (Mall), Bill
Collector
Salary Plus Commission
OPros: Pay is not
impacted by
performance
OCons: Earnings are
somewhat capped. A
talented employee who
is successful in
completing sales may
 Problem Solving
Sheila sells computers and earns
P13,000/mo plus 2% commission on
sales. One month she sold P350, 000
worth of product. Determine her pay.

Gross Pay = Fixed Salary +

Commission
= 13,000 + 0.02(350,000)
= 13,000 + 7,000
= 20,000
 Let Us Practice!
Sales Commiss Salary Commissi
ion Rate on
Amount
800,000 3% 15,000 ?
 Answer:

P39,000
Solution: (800,000 x .03 +
P15,000)
 Graduated Commission

O a commission, which varies

according to how much sales, is
made.
Examples:
Insurance Agent
Range:
100,000 -200,000 = 3%
300,000 -400,000 = 4%
500,00 - 600,000 = 5%
Graduated Commission
O Pros: Employer will be motivated
to perform to your potential,
rewards are directly linked to
performance.
O There is an emphasis on quantity
over quality meaning that the
customer satisfaction may not be
a priority of the employer.
 Problem Solving
Matt is an insurance agent and earns
2.5 % on the first P100, 000 of the sale
of insurance and 3% of any amount
over P100, 000. Determine his pay if
he sold an insurance worth P475,000.
 
Comm Total = 2.5 % commission + 3% commission
= 0.025(100,000) + 0.03(475,000-100,000)
= 0.025(100,000) + 0.03 (375,000)
= 4500
 Let Us Practice!
Range:
100,000 -200,000 = 3% 700,00 - 900,000
= 9%
300,000 -600,000 = 6% 1,000,000- 1,300,00
= 12%
Sales Sales Total
January February Commission
800,000 500,000 ?
 Answer:
P102,000
Solution: Jan (800,000 x .09) =
72,000
Feb (500,000x .06) = 30,000
Application:
 Application :Ship is
Mechanics:
Sinking!
1. Learners are spread out all over the classroom
2. Teacher will pick a random number and shouts: “The
ship is sinking group yourselves into four”.
3. The learners race to get into groups of four. After
forming a group of four they shout “Complete”.
4. Those with less or no group will have the chance to
answer and explain the question appears on the screen.
5. The group disperse and the next number will be picked.
 It is a fee that a
business pays to a
salesperson (agent) in
exchange for his
services in facilitating,
supervising, or
completing a sale.
 If you are an
employer, what kind
of commission will
you offer to increase
the volume of sales
of your company?
 Minette works as real
estate agent and earns
5 % commission on all
sales. One month his
sales were P2, 000,000.
Determine his pay.
 Hazel resigned from her job
out of boredom and took a new
job as a sales representative.
Believing that she will enjoy
more in this new job, she didn’t
really mind what she will get.
If you were Hazel, which
mode/type of commission
would you take? Why?
Assessment: Get ½ sheet of
paper
1. Juan makes money by commission
rates. He gets 15% of everything he
sells. If Juan sold PhP230,000 worth of
items this month, what is his
commission for the month?
2. Mark makes PhP12,000 a month
plus some money by commission
rates. He gets 8% of everything he
sells. If Mark sold PhP60,000 worth of
items this month, what is his
commission for the month?
 Answers:
1. Salary = 15% (PhP230,000) = 0.15
(230,000) = PhP34,500

2. Commission = 8% (PhP60,000) =
PhP4,800. His salary for the month =
PhP12,000 + PhP4,800 = PhP16,800.
 
 Assignment:
OAdvanced study on how
to compute commissions
on cash basis and
commission on
installment basis.
 Thought for the day:
“Everything in life
is a sale and
everything you
want is a
commission.”
-Grantcardone.com