Senior High School

Business Mathematics
Module 9:
Commissions and Interests

AIRs - LM
LU_Business Mathematics_Module9
 ABM – BUSINESS MATHEMATICS
Module 9: Commissions and Interests
Second Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without written
permission from the copyright owners.

Development Team of the Module

Author: Jeremy Arumpac

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Donna M. Casilla
Language Reviewer: Ronald June Balsomo
Illustrator: Ernesto F. Ramos Jr.
Design and Layout: Dexter B. Soller

Management Team:

Atty. Donato D. Balderas Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, PhD
Assistant Schools Division Superintendent
German E. Flora, PhD, CID Chief
Virgilio C. Boado, PhD, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: [email protected]

LU_Business Mathematics_Module9
 Senior High School

Business Mathematics
Module 9:
Commissions and Interests

LU_Business Mathematics_Module9
 Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.

Thank you.

LU_Business Mathematics_Module9
 Target

Didn’t you know that you could have been a millionaire only if your ancestors
have thought about investing during their times? Imagine that your great-great-
grandparents have started opening an account in a bank and payed Php100
monthly. Let’s assume that they started doing this in 1821 with no withdrawals and
consistently paid the same amount. If the bank offers 4% interest compounded
annually, then this year, if you plan to withdraw it, you will be receiving a whooping
Php154,590,583.2! Remember that this started from Php100 only. That is the mind-
blowing power of compounding and investing.

Money invested right will surely give returns over the course of a certain time.
In the reality of life, this also happens. Investing good to people will surely have a
good or even better return. These may not be the same as what have been offered,
but surely, it is something that’s worth receiving. As the cliché saying goes, “It is
better to give than to receive” but, isn’t it better if you also receive back from the good
deeds you have shared? There is not a 100% assurance of receiving back what have
been offered but at least, you have made someone feel better with your
kindness/goodness. Sharing kindness is like dropping a water in a pool of water, it
creates ripples.

After going through this learning material, you are expected to:
1. Illustrate the different types of commissions
❖ Define commission
❖ Differentiate the types of commission
❖ Provide real life examples for each type of commission.
2. Compute commissions on cash basis and commission on instalment
basis (ABM_BM11B S-IIa-11)
❖ Define commissions on cash basis and instalment basis.
❖ Differentiate commission on cash and instalment basis.
❖ Solve problems involving commission on cash and instalment
basis
3. Compute down payment, gross balance and current increased
balance (ABM_BM11B S-IIa-12)
❖ Define down payment, gross balance and current increased
balance.
❖ Differentiate down payment, gross balance and current increased
balance.

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 Jumpstart

Activity 1. TRUE/ FALSE.

Directions: Read each statement below carefully. Mark “T” for statements you
believe are true, and “F” for statements you believe are false. Write your answers in
a separate sheet of paper.

1. If an employee only receives a percentage of the sales made with no additional

compensation given then, he is receiving a straight commission.

2. If an employee receives a guaranteed base salary amount and earn an undefined

amount of commission based on the number of sales he makes, then he is
receiving a graduated commission.

3. Salary plus commission is earned as a percentage of sales that as volume of sales

increases, the amount of commission also increases.

4. Current increased balance is the total amount you have to pay that includes
penalties or interest incurred by unpaid balance from a loan.

5. Down payment is given during the last payment of a purchased item.

6. Salespeople who are paid with graduated commission always earn more than
salespeople paid with straight commission.

7. Commission on installment basis is computed based on partial payments upon

the agreed installment method.

8. If the down payment made is 30% of the total amount, 80% will be paid in the
future since there is always a 10% increase for installment purchases.

9. The price of a house for sale is ₱5,000,000. The bank requires 15% down payment.
If a buyer wants to buy the house, then he needs to pay ₱1,125,000 as down
payment.

10. A car is valued at ₱2,000,000 and the required down payment is ₱500,000. The
down payment in percentage form is 25%.

11. A salesperson is receiving a commission of 12% on all of his sales. If he was able
sell goods amounting to ₱50,000, his total commission is ₱6,000?

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12. A salesperson is paid in installment basis. Assuming that he was able to sell a
total cost of ₱320,000 which will be paid in installments of ₱5,000 monthly with a
commission of 5%. At the end of the payment term, he will be able to receive a
total commission of ₱14,000.

13. Charlie is a sales engineer receiving a basic monthly compensation of ₱13,500 and
1% commission on all sales. He will receive ₱14,745.8 gross earnings for the month
if he will be able to sell ₱124,580.

14. A golden bejeweled necklace was sold at ₱650,000 and will be paid in monthly
installments of ₱65,000. If the salesperson gets a 3% monthly commission, then
he will receive ₱1,950.

15. Hazel receives 20% commission on the appliances she sells. If she sells a water
heater for ₱1,500, a flat iron for ₱1,200 and a refrigerator for ₱20,000, then she’ll
receive ₱5,450 as a commission.

Activity 2: Search me up!

Directions: Search for the words that are related to commissions and interests in
the given puzzle below. Each word corresponds to 2 points. Good luck and enjoy!

E L B A I R A V

B A F I X E D P

K L G P W V R L

C F X S E D J U

T H G I A R T S

Y A C O D N A E

H T M B U Z I Q

C O N S T A N T

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 Discover

The inspiring movie Starting Over Again featuring Piolo Pascual and Toni
Gonzaga was aired in 2014. This movie is an insightful lesson on finances especially
in investments. Marco (played by Piolo Pascual) was able to afford his ambition of
owning a restaurant even coming from a career shift from being a college professor
to becoming a chef. He invested in different plans which over the years accumulated
more than enough money to pursue his dreams. This was made possible because of
the strategic plan made by Marco and the stability and great management skills
offered by the agents and the insurance company.
In an insurance company, most agents earn money through commissions.
Usually, these are percentages of their total sales of the month. This means that the
more sales/deals they made, the higher salary they will get. It is important to note
that the computation of rates and commissions differ from company to company.
Given below are examples of companies’ processes of paying commissions to their
employees.
The net sales will be multiplied to a certain percent to get a commission.
There are companies that pay salespeople straight commissions. They will be paid
based on the amount of their total sales. As straight as it sounds, no sales means no
salary. There are also companies who pay their people fixed salary with
commission. The rates of commission can be the same for all the amounts sold or
it can also be changing depending on the scale of amounts sold.

There are possibilities that sales made are paid in full with cash or will be paid
through installment basis. Instances are, the salesperson will be paid partial
payments if sale was closed through installment or they will get the whole
commission if it was paid through outright cash. Regardless on how the salesperson
gets the commission, he still gets the commission’s total amount. Usually, they get
all these at the end of the month for all sales closed.

Types of Commissions

1. Straight commission – A certain percentage of the total sales is given to the

salesperson.

Examples:

a) A stockbroker receives a commission of 7% for selling annuities to her clients.

If she sells ₱250,000, how much commission will she earn?

Solution: Since the stockbroker receives 7% commission based on sales, she’ll earn:
250,000 × 0.07 = 17,500
Thus, the stockbroker will earn ₱17,500 commission.

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 b) Antonio receives 30% commission on the appliances he sells. If he sells a TV
for ₱17,000, a refrigerator for ₱20,000 and a heater for ₱22,000, how much
does Harry make in commission?
Solution: Since Antonio receives 30% commission based on sales, he’ll earn:
(17,000 + 20,000 + 22,000) × .3 = 17,700
Thus, Antonio will earn ₱17,700 commission.

2. Salary plus commission – A certain percentage of sales is given to a salesperson

along with a fixed amount of salary.

Examples:

a) Christian works as a sales agent for a company and earns a basic monthly
salary of ₱8,000 plus 5% commission on all his sales. If he made total sales
of ₱50,000 for the month, how much is his gross pay for the month?
Solution:
₱50,000 × .05 = ₱2,500
₱2,500(commission) + ₱8,000(salary) = ₱10,500
Thus, the Christian will earn ₱10,500 salary and commission.

b) Juan decides to work for another company that will pay him ₱17,500 per
week and 6% of any sales above ₱150,000. If he sold goods worth ₱284,400, what
is his gross pay?
Solution: ₱284,400 – ₱150,000 = ₱134,400
₱134,400 × 0.06 = ₱8,064 (Commission)
₱8,064(commission) + ₱17,500(salary) = ₱25,564

3. Graduated Commission – The percentage on the sales changes depending on how

much the salesperson will be able to sell.

Examples:

a) Eduardo works for a company that pays him 1% on the first ₱250,000 sold,
2% on the next ₱750,000 and 3% on all sales over ₱1,000,000. What is his
gross pay if he sells ₱1,250,000?
Solution: ₱250,000 × 0.01 = ₱2,500
₱1,250,000 – ₱250,000 = ₱1,000,000

₱750,000 × 0.02 = ₱15,000

₱1,000,000 – ₱750,000 = ₱250,000

₱250,000 × 0.03 = ₱7,500

Total: ₱2,500 + ₱15,000 + ₱7,500 = ₱25,000

Thus, Eduardo will receive a total of ₱25,000 as his commission.

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 b) Ana, the assistant manager of a clothing store earns a salary of ₱17,500
per month. She also receives a 5% commission on the first ₱450,000 she
sells, and 6% commission on sales above ₱450,000. If Ana sold ₱850,000
worth of clothes last month, what was her total pay?

Solution: ₱450,000 × 0.05 = ₱22,500 (first commission)

₱850,000 – ₱450,000 = ₱400,000

₱400,000 × 0.06 = ₱24,000 (second commission)

₱22,500 + ₱24,000 = ₱46,500 (first + second commission)

₱46,500 + ₱17,500 = ₱64,000 (total commission plus salary)

Ana earned a total of ₱64,000 last month.

Cash vs. Installment

a. Computing Commissions on Cash Basis – This type of commission is

similar to computing straight commissions where outright cash is given as a
payment.

Example 1:

Kevin works at Luna’s watch store. For every cash purchase of a watch, he
gets 6.1% commission. In a particular month, he was able to sell 10 watches costing
₱8,000 each. How much was his total commission for such cash sales?
Solution:
Total Sales = ₱18,000/watch × 10 watches = ₱180,000
Cash commission = ₱180,000 × 6.1% = 180,000 × 0.061 = 10,980
Thus, Kevin’s total commission is ₱10,980.

b. Commission on Installment Basis – commission is computed based on

partial payments upon the agreed installment method.

Example 2:

At Luna’s store, some items are paid on installment basis through credit
cards. Kevin was able to sell 10 watches costing ₱18,000 each. Each transaction is
payable in 6 months divided into 6 equal installments without interest. Kevin gets
2% commission on the first month for each of the 10 watches. Commission decreases
by 0.3% every month thereafter and computed on the outstanding balance for the
month. How much commission does Mike receive on the first month? On the second
month? Third? Fourth? Fifth? Sixth month? At the end of installment period, how
much will be his total commission?

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Solution:
First month commission: ₱18,000/watch × 10 watches × 0.02 = ₱3,600
Second month commission: ₱15,000/watch × 10 watches × (0.02 – 0.003)
= ₱2,550
Third month commission: ₱12,000/watch × 10 watches × (0.017 – 0.003)
=₱1,680
Fourth month commission: ₱9,000/watch × 10 watches × (0.014 – 0.003)
=₱990
Fifth month commission: ₱6,000/watch × 10 watches × (0.011 – 0.003)
=₱480
Sixth month commission: ₱3,000/watch × 10 watches × (0.008 – 0.003)
=₱150
His total commission for six months is:
₱2,550 + ₱1,680 + ₱990 + ₱480 + ₱150 = ₱9,450.

Note: The base price of the watch is subtracted by 3,000 for each month since it was
stated in the problem that the price is will be paid in 6 equal payments. Thus
18,000/6 = 3,000.

THE DOWN PAYMENT

Down payment is an initial payment made when something is bought on
credit.
The down payment is a first payment that one makes when one buys something with
an agreement to pay the rest later.

How do we obtain the down payment?

Example#1:

When one purchases a car or any big item not through cash but installment
terms, normally, a certain down payment is required of the buyer. Car dealers
normally require a minimum down payment, which is usually 20% of the total cost
of the vehicle purchased. The interest on the remaining balance is then computed
depending on the number of years a buyer would want to amortize the remaining
balance. If a car costs ₱1,000,000 and a minimum 20% down payment is required
by the company, then the buyer will have an initial cash out of ₱200,000; that is,
0.20 × 1,000,000 = 200,000. The remaining ₱800,000 will be amortized monthly and
the amount of monthly amortization depends on the number of years the buyer will
want to pay the loan. Normally, buyers prefer a 3-year or 5-year payment period. The
lesser the number of years, the lesser the total amount paid as interest to the loan.
But with this arrangement, the monthly amortization will be considerably higher
than when one chooses to pay the balance for longer number of years.

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Example#2:

Companies selling houses or condo units lure buyers by stating that no down
payment is required but only a certain amount of reservation fee. The reservation fee
paid is deductible when the buyer decides to proceed with the purchase. Otherwise,
it will be forfeited in favor of the company. After the reservation fee has been paid,
the buyer is told to pay the monthly amortization. For instance, ₱10,000 per month
for two years without interest. At the end of two years, the remaining balance will
now be subjected to an interest either through in-house or bank financing.

GROSS BALANCE

This refers to the total amount of money a bank has on deposit before
adjusting for not cleared checks or deposits, as well as reserve requirements. That
is, the book balance is a measure of what the bank has on hand before adding or
subtracting regulatory obligations and items that will soon appear on its books. This
is the term used by banks to describe the amount of money available before any
adjustments is made for deposits in transit, checks that have not been cleared, and
reserve requirements and interest received from “float funds”.

Example:
A simple case of gross balance refers to what is readily available for you to use
based on your bank deposits. For example, a check amounting to Php5,000 that has
been deposited today may not be withdrawn the next day because it has not cleared
yet. If your bank passbook currently contains ₱30,000, you may not be able to
withdraw the whole amount yet because your gross balance is only ₱25,000 since
your check has not been cleared yet.

CURRENT INCREASED BALANCE

This refers to the total amount you have to pay that includes penalties or
interest incurred by unpaid balance from a loan or payment you are supposed to
have made but was not able to do so on time.

Example:
As of this month’s cut-off date, the current total amount due from your
purchases using your credit card is ₱99,386.59. The minimum required payment is
5% of the total amount due. If you pay only the minimum required payment, a
financing charge of 3.4% of the remaining balance will be charged to the next bill.
Assuming you refrain from using your credit card on any of your purchases for the
next 3 months and the financing charge of 3.4% is applied every billing period, show
your expected monthly bill for the next 3 months.

Solution:
Given the current bill of ₱99,386.59, the minimum required payment is
0.05(99,386.59) = ₱4,969.33. If only the minimum required payment is paid, then
the remaining debt balance is 99,386.59 – 4,969.33 = ₱94,417.26. Assuming there
are no credit bill transactions for the next 3 months and the only minimum required

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payment each month is paid, the table below shows the monthly total amount due
for each of the next 3 months.

Time Total amount due for the month Minimum required

t(months) payment for the month

0 99,386.59 0.05(99,386.59) =
4,969.33

1 (99,386.59 – 4,969.33) + .034(99,386.59 – 0.05(97,627.45) =

4,969.33) 4,881.37

= 94,417.26 + .034(94,417.26)
= 1.034(94,417.26)

=97,627.45

2 1.034(97,627.45 – 4,881.37) 0.05(95,899.45) =

4,794.97
= 1.034(92,746.08)
=95,899.45

3 1.034(95,899.45 – 4,794.97) 0.05(94,202.03) =

4,710.10
= 1.034(91,104.48)

= 94,202.03

Observe that for the next 3 months, a total of ₱14,386.44 has already been paid for
the credit card bills. However, only ₱5,184.56 (99,386.59 – 94,202.03) has been
deducted so far from the original debt of ₱99,386.59. Hence, every time we keep
paying only the required minimum payment, more money goes to interest payments
rather than payment of the actual debt.

From the above example, your minimum required payment of ₱4,969.33 serves as
your down payment for your loan of ₱99,386.59 leaving you with a balance of
₱94,417.26 at the start of the month. However, because there is a finance charge of
3.4%, if you are not able to pay for the next month, your current increased balance
will become ₱97,627.45

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 Explore

Enrichment Activity 1: Illustrate me!

Directions: Using your own words, illustrate the three types of commission and
give one real life example for each type. Use the box provided below. Write your
answers legibly.

Straight Commission Commission plus Graduated

Salary Commission

Enrichment Activity 2: Solve me.

Directions: Solve for what is being asked on each of the given problem Show your
complete solution.

1. If a car selling company asked for ₱240,000 as down payment for a ₱1.2
million worth car, how many percent was the down payment?

1
2. Ryan is a broker who earns commission of 3 % on all securities sales that he
2
makes. For the past year, he closed sales totaling ₱928,867. Find the amount
of commission he earned for the year

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3. Dan is a sales representative receiving an annual salary of ₱120,000 plus
commission on all his sales above quota of ₱25,000 in accordance with the
following schedule:
1
First ₱30,000 above quota - %
2
Next ₱50,000 - 1%
Next ₱70,000 - 2%
Over ₱150,000 - 3%

Compute for his gross earnings if his sales for the month:
a. ₱37,900
b. ₱58,200
c. ₱92,300

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 Deepen

At this point, describe a story, movie, or a book where you’ve seen or read the
application of commission. Put the title of the story or movie that you’ve read and
explain in detail how commission was used in the whole story. Relate this story in
real life situation. You may use the given example in the first part of this module as
your reference. A rubric will be used to grade your works objectively.

Rubrics for Scoring the Output

CATEGORY Excellent Very Good Good Fair
5 points 4 points 3 points 2 points

Content Covers topic Includes Includes Content is

in-depth with essential essential minimal or
details and knowledge information there are
examples. about the about the several
Subject topic. Subject topic but factual errors.
knowledge is knowledge there are 1-2
excellent appears to be factual errors.
good.

Story used The story The story The story The story
used is clear, used is clear, used is used is
well-detailed with sufficient slightly clear, unclear, with
and details and with minimal minimal to no
explained. explanation details and details and
explanation. explanation.

Understanding Demonstrates Shows Shows Little to no

/ deep understandin shallow demonstratio
understandin g of lesson understandin n of
Application
g of lesson and ideas g of lesson understandin
and ideas applied to and ideas g of the
applied to analysis of applied to lesson.
analysis of case analysis of
case situations. case
situations situations.

Grammar and No Minimal Frequent Major

mechanics misspellings misspellings misspellings misspellings
or and/or and/or or
grammatical mechanical grammatical grammatical
errors. errors. errors. errors.

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 Gauge

ASSESSMENT 1.
Directions: Read and analyze the given situation below. Write your answers legibly.
Julius resigned from his job out of boredom and took a new job as a sales
representative. Believing that he will enjoy more in this new job, he didn’t really mind
what he will get. The following are the options he was offered:
1. His pay would be through straight commission basis.
2. He gets a fixed base salary plus a commission.
3. He gets paid through graduated commission.
4. He gets paid on commission by installment basis.
If you were Julius, which of the four options will you choose and why?

Rubrics for Scoring the Output

CATEGORY Excellent Very Good Good Fair
5 points 4 points 3 points 2 points

Perspective Articulates a Articulates a Your position is Your position is

forceful clear underdeveloped underdeveloped
position that position that or unfocused and confusing
is is argued through the points through
convincingly throughout paper. the paper.
argued the answer
through the to the aim
answer and question
relevant to and is
the topic. relevant to
the topic.

Evidence Persuasively Supports Supports Position is

supports the position position with supported with
perspective with underdeveloped no relevant
with well- developed reasons using evidence
developed reasons little evidence.
reasons using
using evidence.
evidence and
examples

Analysis The evidence Contains a Weak or no No visible

is critically visible visible analysis analysis on how
analyzed for analysis of on how the the evidence
its relevance how the evidence supports the
to the evidence supports the
supports the

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 original original original original
perspective perspective. perspective. perspective

Organization Uses an Organizes Some No organization

entirely ideas to organization of of ideas to build
appropriate build an ideas to build an argument
language argument an argument through logical
style for a through through logical structure.
formal essay. logical structure.
Only one or structure
two errors in and logical
punctuation, flow of
grammar, ideas.
and spelling
appear in the
essay.

ASSESSMENT 2.
Directions: Read each item carefully. Use separate sheet for your answers. Write the
letter of the best answer for each test item.

1. If an employee only receives a percentage of the sales made with no

additional compensation given, what type of commission is he receiving?
A. Down payment
B. Straight commission
C. Graduated commission
D. Salary plus commission

2. If an employee receives a guaranteed base salary amount and earns an

undefined amount of commission based on the amount of sales he makes,
what type of commission is he receiving?
A. Down payment
B. Straight commission
C. Graduated commission
D. Salary plus commission

3. What type of commission is earned as a percentage of sales that as volume

of sales increases, the amount of commission also increases?
A. Down payment
B. Straight commission
C. Graduated commission
D. Salary plus commission

4. What do you call the total amount you have to pay that includes
penalties or interest incurred by unpaid balance from a loan?
A. Down payment
B. Straight commission
C. Graduated commission
D. Current increased balance.

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5. An insurance company pays their employees fixed salary of ₱10,000 plus
10% commission on sales made. If an employee was able to sell a total
amount of ₱52,500, how much is his total pay?
A. ₱5,250
B. ₱12,520
C. ₱15,250
D. ₱15,550

6. The price of a house for sale is ₱7,500,000. The bank requires 15% down
payment. How much should a buyer pay for the down payment?
A. ₱1,125,000
B. ₱2,500,000
C. ₱5,125,000
D. ₱6,375,000

7. A car is valued at ₱1,800,000 and the required down payment is ₱450,000.

How much is the down payment for the car in percentage form?
A. 10%
B. 15%
C. 20%
D. 25%

8. A salesperson is receiving a commission of 8% on all of his sales. If he was

able sell goods amounting to ₱250,000, how much is his commission?
A. ₱8,000
B. ₱18,000
C. ₱20,000
D. ₱25,000

9. A salesperson is paid in installment basis. Assuming that he was able to sell

a total cost of ₱120,000 which will be paid in installments of ₱10,000
monthly with a commission of 3%. How much will he be earning at the end
of one year?
A. ₱300
B. ₱360
C. ₱3,000
D. ₱3,600

10. Robert is a sales engineer receiving a basic monthly compensation of

₱13,500 and 1% commission on all sales. How much is his gross earnings
for the month if he sold ₱124,580?
A. ₱14,745.8
B. ₱14,875.4
C. ₱17,445.8
D. ₱17,475.8

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11. A high-end bag was sold at ₱435,000 which will be paid in monthly
installments of ₱36,250. If the salesperson gets a 2% monthly commission,
how much commission will he be earning monthly?
A. ₱275
B. ₱525
C. ₱725
D. ₱1,225

12. Irene receives 25% commission on the appliances she sells. If she sells a
rice cooker for ₱2,500, a hair blower for ₱1,900 and a washing machine for
₱23,000, how much does Irene make in commission?
A. ₱5,860
B. ₱6,580
C. ₱6,850
D. ₱8,650

13. Uncle Gerry works at Elyu’s bracelet store. For every cash purchase of a
bracelet, he gets 5.2% commission. In a particular month, he was able to
sell 120 bracelets costing ₱1500 each. How much was his total commission
for such cash sales?

A. ₱3,960
B. ₱6,390
C. ₱6,930
D. ₱9,360
14. Charlene, the assistant manager of a clothing store earns a salary of
₱15,500 per month. She also receives 3% commission on the first ₱400,000
she sells, and 5% commission on sales above ₱400,000. If Charlene sold
₱650,000 worth of garments last month, what was her total pay?

A. ₱12,000
B. ₱24,500
C. ₱40,000
D. ₱55,000

15. Joseph works for a company that pays him 2% on the first ₱350,000 sold,
3% on the next ₱500,000 and 4% on all sales over ₱500,000. What is his
gross pay if he sells ₱825,000?

A. ₱24,500
B. ₱25,500
C. ₱42,500
D. ₱45,500

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LU_Business Mathematics_Module9
LU_Business Mathematics_Module9
17
Activity 1: TRUE/FALSE
1. T 6. F 11. T
2. F 7. T 12. F
3. F 8. F 13. T
4. T 9. F 14. T
5. F 10. T 15. F
Activity 2: Search me up!
1. variable
2. plus
3. constant
4. fixed
5. straight
Enrichment Activity 2: Solve me.
1. 20%
2. ₱32,510.345 or ₱32.510.35
3. a. ₱10,189.5
b. ₱10,580
c. ₱11,846
Answer Key
References

Bragg, S. (2019, August 11). AccountingTools. Retrieved from How to calculate a

commission: https://www.accountingtools.com/articles/how-to-calculate-a-
commission.html

Cradler, J. (2010). MathScore. Retrieved from Commissions:

www.mathscore.com/math/practice/Commissions/

Norma D. Lopez-Mariano, P. (2016). BUSINESS MATHEMATICS. Quezon City: REX Book

Store.

Santos, D. C., & Sta. Maria, K. V. (2015). MATH ACTIVATED: Engage Yourself and Our
World BUSINESS MATH. Makati City: DON BOSCO PRESS, INC.

Team, M. S. (2018, January 22). mba sK. Retrieved from Marketing and Strategy:
https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/13675/graduated-commission.html

18
LU_Business Mathematics_Module9
 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
[email protected]
[email protected]

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LU_Business Mathematics_Module9