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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.

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Q: How are sales commissions calculated?
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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.


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How do you use sales per hour for payroll?

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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?

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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


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"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.


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