Presentation on theme: "Commissions, Royalties, & Piecework Pay"— Presentation transcript: 1 Commissions, Royalties, & Piecework Pay
2 Pay Plans Last week, we covered: 3 Commission Some jobs that get paid commission: Real Estate Agent 4 Royalties Some jobs that pay royalties Author Movie Director
5 Piecework Pay Jobs that have piecework pay plans: Newspaper delivery
6 Advantages vs. Disadvantages
7 Calculating Commission 8 Calculating Commission 9 Calculating Commission 10 Calculating
Commission
11 Number 1 Dan is paid straight commission of $5.75 for each item he sells. Last month he sold
103 items. How much did he make in commission: Commission = (amount for each item) x (# items sold) = (5.75) x (103( = $592.25 12 Number 2 A student sells subscriptions for a magazine that costs $35 a year and makes a commission of $5.25 on each subscription. What percent commission does he
make? What percent of 35 is 5.25? ( ) ( ) X 35 = 5.25 Multiply 35x = 5.25 x = 0.15 15% 13 Number 3 Paul earns a commission of 9% of his sales. Last week, he had sales of $646.70, $237.58,
$1,984.89, $658.66, and $ What was his total commission? Total Sales = $4,481.56 Commission = $403.34 14 Number 4 Jo Ann is paid a salary of $410 a week and a commission of 5.6% on all sales. Her sales last week were $67,000. What was her total earnings for the week? Commission = $3,752
Total Earnings = $4,162 15 Number 5 Sheldon earns a salary of $150 a week and a commission of 7% on all sales. If Sheldon’s sales for one week were $6,890, what was his salary for the week? Commission = $482.3 Total Earnings = $632.30
16 Number 6 Roosevelt receives a weekly salary of $600 plus 1% commission on all sales in excess of $12,500 a week. Last week his sales were $48,370. What was his total earnings? Amount in excess of $12,500 = $35,870 Commission = $358.70 Total = $958.70
17 Royalties & Piecework Pay 18
Remember Royalties You are paid according to sales on an item you created Piecework Pay You are paid according to how much you manufacture 19 Royalties You write a children’s book and receive 10% royalty based on total sales of the book. If the book sells for $47.95 and
sells 17,000 copies, how much do you receive? 1) Find total amount in sales = (Selling Price) x (# of copies sold) = (47.95) x (17,000) = $815,150 = $815,150 Find royalty amount of total sales = (10%) x (total sales) = (0.10) x (815,150) = $81,515 Total amount you receive in royalties is $81,515
20 Royalties You direct a zombie movie and receive 5% royalty based on total sales of the movie. If the movie sells for $29.99 and sells 47,500 copies, how much do you receive? 1) Find total amount in sales = (Selling Price) x (# of copies sold) = (29.99) x (47,500) = $1,424,525 =
$1,424,525 Find royalty amount of total sales = (5%) x (total sales) = (0.05) x (1,424,525) = $71,226.25 Total amount you receive in royalties is $71,226.25 21 In book, please complete problems
2-10 on page 307
22 2) Rock musician Donny West is paid 15% on his CD sales and tour video sales. Last year, he sold one million CD’s and 550,000 videos. The CD’s were
sold to music stores for $5 and the videos sold for $6 each. What was the total amount of cd sales? What was the total amount of video sales? What was the combined total? How much did Donny receive in royalties? 1,000,000 x $5 = $5,000,000 550,000 x $6 = $3,300,000 = 5,000, ,300,000 = $8,300,000 $8,300,000 x 0.15 = $1,245,000
23 3) Joan sells new cars at a local dealership 24 4) Liz works at Heedle’s Computer Outlet
25 5) Oscar sells Internet access subscriptions by telephone
26 Professional baseball player Rusty Raspberry earns $1,715,000 a year playing baseball. Last year, a biography that he had written sold 300,000 copies at a price of $24 each. Raspberry received 10% in royalties on book sales. What was his total salary last year from the book and
his baseball career? Baseball Career: Book Sales: Royalty: Total Salary: 0.10 = $1,715,000 $24 x 300,000 = $7,200,000 7,200,000 x 0.10 = $720,000 $1,715,000 + $720,000 = $2,435,000
27 7) Maram is a real estate agent. She earns 6 28 8) Glen has a job selling magazine subscriptions by phone 29 9) Hillside Travel pays its employees $10 per hour plus 8% commission on all trips booked. Tyrus worked 20 hours last week and booked trips amounting to $2,100. What was his gross pay for the week? Base Salary: Base Pay: Commission: Total Pay: 0.08 $10 per hour Glen worked 20 hours $10 x 20 = $200 $2,100 x
0.08 = $168 $200 + $168 = $368.00 30 10) Silvan picks berries at Seymour’s Berry Farm 31 Piecework Pay Steve works in a dress factory. He is paid $85 per dress that is produced. Yesterday, he made 3 dresses. How much did he earn? Earnings = ($ paid per unit) (# of units) = ($85) x (3) = $225 Steve made $225 yesterday.
32 Piecework Pay Tony picks strawberries and gets paid 45 cents per container for the first 200 containers. He receives 65 cents per container for all containers over Last week, he picked 270 containers. How much did he earn? 1) First 200 containers: → (200) x (0.45) = 90 2) Containers over 200: →
(70) x (0.65) = 45.5 Total Sales: = = 135.5 = $135.50 = $90 = $45.50 33 Total Sales: Total Earnings: 34
CHECK YOUR UNDERSTANDING 35 First $900: Greater than $900: Total Commission:
36 CHECK YOUR UNDERSTANDING 37
Piecework Pay: Price made per unit: Units Made: Total Earnings: 38 CHECK YOUR UNDERSTANDING 39 EXAMPLE 4 Tony picks strawberries and gets paid at a piecework rate of 45 cents per container for the first 200 containers picked. He receives 65 cents per container for every container over 200 that he picks. Last week, Tony picked 270
containers. How much did he earn? First 200 Strawberries: Last 70 Strawberries: Total Amount Paid: $0.45 x 200 = $90 $0.65 x 70 = $45.50 $90 + $45.50 = $135.50 40 CHECK
YOUR UNDERSTANDING 41 EXAMPLE 6
Joyce works at Fortunato’s Furniture. She is paid on commission. She receives 10% of her first $900 in sales and 15% of the balance of her sales. Last week she earned $750. What was the total value of the furniture she sold? 42 CHECK YOUR UNDERSTANDING |