Commission, Piecework & Royalties

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#18556

Commission

A percentage of sales – usually associated with real estate, car sales

Royalties

A percentage or value per item of sold – usually associated with creative arts, books sold, music 

Piecework

paid per how many pieces are made/delivered – usually associated with manufacture of garments, delivery of leaflets

[Admin]

#18558

Danny is paid 4.8c for every envelope he folds and addresses. a. If he can process 14 envelopes in 5 minutes, how many can he complete in an hour? b. Calculate his pay for 2½ hours of work?
a. 12 × 14 = 168	there are 12 lots of 5 minutes in an hour, which means he can process 14 envelops 12 times
b. 2.5 × 168 = 420 4.8 × 420 = 2016c 2016c ÷ 100 = $20.16	168 envelopes per hour, so in 2.5 hours, he would do 2.5 lots of 168each envelope = 4.8c, so that is 4.8 lots of 420 convert the cents to dollars by dividing by 100 as $1 = 100c

[Admin]

#18559

Jordan is paid a retainer of $275 a week and a commission of 2% on all sales. How much did she sell if she earned $1115 for the week?
Commission + $1115 – $275 = $840	Commission = total paid – retainer = $1115 – $275
0.02 × x = 840	let x be the amount of sales so 2% of x will be $840     (remember: 2% = 2 ÷ 100 =  0.02)
x = 840 ÷ 0.02 x = $42,000 ∴ sales are $42,000	divide both sides by 0.02 to find x

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