answersLogoWhite

0


Best Answer

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

12y ago
This answer is:
User Avatar

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.

Related questions

What does sales draw mean?

Often a person who is a commissioned sales person will receive their commissions on a monthly basis. In the interim, they might receive a weekly advance or "sales draw" against their next monthly commission check. So, if there was four weeks in the month, they might receive 3 checks for, say $500 each. Then, when their actual commissions were calculated for the month, the $1,500 draw would be deducted from the commission check.


What types of commissions do corporate sales jobs pay?

Corporate sales jobs pay 2 types of commission. These are straight which is based off of the percentage of sales and variable commissions pay differently upon reaching targets.


How are sales commissions figured in the promotional products industry?

While sales commissions vary from business to business there are industry standards. How sales commissions are figured depends on the pay structure of the sales rep. Sales reps may work straight commission, salary plus commission and others, it depends on the agreement between the company and rep. Salespeople normally receive their commissions when they write up an order, or when the client/customer pays their invoice. Typically a sales rep gets paid when the sale is complete to avoid problems if an order derails before completion.


Is sales commissions a fixed or variable cost?

Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.


Is commissions a fixed or variable costs?

Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.


Are sales commissions a direct labor cost?

is salesmen commission apart of direct labor


Sliding scale commissions?

"Sliding scale commissions" alter the amount of a sales commission based on the value of a sale. The usual arrangement is that larger sales receive a fixed percentage up to a certain price, and a lower percentage on the value above that price.


What does commissions mean?

it means its been put back into service


You make 6 percent commissions on sale total week sales are 4580 What is your commission?

274.80


What does commissioning?

Commissions can be money that is earned from things like sales. Commissions can also refer a request to produce a piece of work that will be paid for. Sculptors can be asked to make a special statue for example.


Components of sales force compensation?

Sales person compensation is often an index and ratio of multiple factors and criterion. Sales compensation can have baseline index of hourly compensation regardless of productivity. The second level to compensation after hourly can be a performance, that is commissions or incentives based. Thus, hourly labor plus commissions/incentives form the two most common core components behind sales pays.


Is calculated by dividing the net income by revenue or sales?

return on sales