ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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(10%-Sales Commission%) * DAP
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(10%-Sales Commission%) * NSV
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(Sales Commission%-10%) * DAP
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(Sales Commission%-10%) * NSV
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Detailed explanation-1: -To calculate the payable commission, multiply the sales revenue by the sales commission rate. A 10 percent commission rate on a $10, 000 product deal would pay $1, 000 in commission.
Detailed explanation-2: -How to calculate commission. This is a very basic calculation revolving around percentages. Just take the sale price, multiply it by the commission percentage, and divide it by 100.
Detailed explanation-3: -Salespeople receive a pre-defined percentage of all the sales they make. For example, if you sell $50, 000 in revenue while working with a company that pays out 5% of revenue, your commission will be $2, 500.
Detailed explanation-4: -The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.