Solving For Commission and Commission Rate | Grade 7 | Matatag Curriculum | Explain in Detailed |

Summary

In this educational video, Teacher MJ teaches how to solve problems involving commission and commission rate. The lesson covers key definitions such as commission, commission rate, and their respective formulas. Through three practical examples, Teacher MJ explains the process of calculating commission and weekly salary based on sales and commission rates. The video demonstrates how to apply formulas for both commission and commission rate, offering clear step-by-step instructions for viewers to understand and apply in real-life scenarios. It is an informative tutorial aimed at students looking to grasp these essential concepts.

Takeaways

• 😀 Commission refers to the money earned from selling something.
• 😀 Commission rate is the percentage taken from the selling price as the agent's earnings.
• 😀 The formula to calculate commission is: Commission = Total Sales × Commission Rate.
• 😀 To calculate the commission rate, use the formula: Commission Rate = (Commission ÷ Total Sales) × 100%.
• 😀 When solving commission problems, always identify what is being asked first.
• 😀 In Example 1, John earned Php54,000 in commission from selling a house worth Php1,800,000 at a 3% commission rate.
• 😀 In Example 2, Peter's total weekly salary is calculated by adding his base salary and the commission from sales.
• 😀 To convert a percentage to a decimal, move the decimal point two places to the left (e.g., 8% = 0.08).
• 😀 The commission for Peter's weekly sales was Php208, and adding that to his base salary gives a total salary of Php4,708.
• 😀 In Example 3, the commission rate is calculated by dividing the commission by total sales and multiplying by 100 to get the percentage.
• 😀 When calculating percentages, be sure to convert to decimals first, and multiply by 100 to return to the percentage format.

Q & A

What is the definition of Commission in the context of the script?

Commission refers to the amount of money earned by a person from selling something. It is usually a percentage of the sales made.

What is the formula to calculate Commission?

The formula to calculate Commission is: Commission = Total Sales × Commission Rate.

How do you calculate the Commission Rate?

To calculate the Commission Rate, use the formula: Commission Rate = (Commission ÷ Total Sales) × 100%. This gives the percentage of the sale amount earned as commission.

In Example 1, how much commission did John earn from the sale of a house worth Php 1,800,000 at a 3% commission rate?

John earned Php 54,000 as commission from the sale of the house. This is calculated by multiplying Php 1,800,000 by 0.03 (3%).

What does 'Base Salary' refer to in Example 2, and how is it different from Commission?

Base Salary refers to the fixed amount a person earns on a regular basis, regardless of sales. In Example 2, Peter's base salary is Php 4,500, which is added to the commission earned on sales.

How do you find Peter’s weekly salary if his base salary is Php 4,500 and he earned 8% commission on Php 2,600 in sales?

To find Peter's weekly salary, first calculate the commission: 2,600 × 0.08 = Php 208. Then add the commission to the base salary: 4,500 + 208 = Php 4,708.

What is the key difference between the Commission and the Commission Rate?

Commission is the actual money earned based on the sales made, while Commission Rate is the percentage of the sales price that determines how much commission is earned.

In Example 3, how is the Commission Rate calculated if the commission earned is Php 5,600 and the total sales amount is Php 12,800?

To calculate the Commission Rate, divide the commission (5,600) by the total sales (12,800), then multiply by 100%: (5,600 ÷ 12,800) × 100 = 43.75%.

Why is it important to convert percentages to decimals when calculating Commission?

Converting percentages to decimals is necessary because mathematical operations like multiplication require decimal form. To convert a percentage, move the decimal point two places to the left (e.g., 3% becomes 0.03).

What steps should you follow when solving commission-related problems?

First, understand the problem and identify the given values. Then, use the appropriate formula for either commission or commission rate. Finally, perform the calculations and interpret the result.