answersLogoWhite

0

It could either be a straight commission scale (like 5% of all sales, for example), or it could be a sliding scale (say 3% of the first 10000, then 6% of the next 10000, etc).

It's often calculated on a monthly basis. So say it's 5% of all sales. If the gross sales attributed to the salesperson is 15000, then multiply 0.05 [equivalent of 5%] by $15000 to get $750 commission.

If it is the latter, then the 3% of the first 10000 is $300, then you have 6% of the next 5000 which is $300. Add those two together to get $600, total commission.

User Avatar

Wiki User

13y ago

Still curious? Ask our experts.

Chat with our AI personalities

ReneRene
Change my mind. I dare you.
Chat with Rene
BlakeBlake
As your older brother, I've been where you are—maybe not exactly, but close enough.
Chat with Blake
ProfessorProfessor
I will give you the most educated answer.
Chat with Professor

Add your answer:

Earn +20 pts
Q: How are sales commissions calculated?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Math & Arithmetic

How do you calculate revised standard sales?

Revised standard sales can be calculated by dividing the amount of sales over a given length of time. This is a more accurate way to calcuating sales rather than a projection.


How do you calculate closing ratio?

Closing Ratio is the tracking of sales performance. It is calculated by the number of sales closed over the total number of sales presentations made in a given period of time.


How do you calculate market expense to sales ratio?

Market expense to sales ratio is calculated by dividing selling and administrative expenses by total sales. ------------------------ Khairul Alam Institute of Business Administration University of Dhaka


What does an independent Mary Kay director make per year?

There isn't a set figure for what Director's make a year. It all depends on how big their unit is & how much they're still selling. The bigger the unit, the less energy they put into personal sales, focusing more into training. Add in the free car compensation, partial car insurance payment, tax deductions, jewelry, prizes etc & the average Director earns more than just her sales & commissions. Top Directors earn lavish trips, BIGGER diamonds, more commissions, etc. Some are multimillionaires.


How do you use sales per hour for payroll?

Decide in a rate of pay for each sale. ex: $4 per sale. Then multiply by sales per hour calculated separately. A person works 20 fours and makes 100 sales ... that is 100 sales / 20 hrs = 5 sales per hour Pay would be $4 per sale x 5 sales per hour = $20 per hour Total pay --- $20 per hour x 20 hours = $400.