Date: September 01, 2022 Grade: 11

Subject: Business Mathematics Code: ABM_BM11BS-IIa-11

I. OBJECTIVES:

At the end of the lesson, the students are expected to:

a) Illustrate the different types of commissions ABM_BM11BS-IIa-11
b) Compute commissions on cash basis and commission on instalment basis ABM_BM11BS-IIa-
11

II. SUBJECT MATTER:

a) Topic: Types of Commissions and Computing Commissions on Cash and Installment Basis
b) References: Business Mathematics
c) Materials:

 Projector
 Laptop
 Calculator
 Paper
 Pens
 Cartolina

III. PROCEDURE:

A. Daily Routine
 Prayer
 Greetings
 Checking of Attendance
 Reminder on classroom rules / policies

B. LET’S CHECK YOUR PRIOR KNOWLEDGE

ACTIVITY 1: PASS THE CRUMPLED PAPER

The Teacher will give the students a crumpled paper with questions inside it. The
teacher will instruct the students to pass the crumpled paper to other students. The
teacher will play a music. When the music stops, the student who hold the
crumpled paper will stand up, read the question and answer it.

Student 1.
It is a payment based on the percentage of sales of an agent or salesman.

a. commission b. salary c. interest d. benefits

 Student 2.
Is a fixed regular payment, typically paid on a monthly or annually basis.

a. commission b. salary c. interest d. benefits

Student 3.
Is an individual or an organization in the government, private,
nonprofit or business sector that hires and pays people for their work.

a. employer b. employees c. manager d. accountant

Student 4.
Are generally not employees of the firm and paid commissions only.

a. salesmen b. agents c. employees d. employers

Student 5.
Are employees of the firm either paid on a straight commission basis or on a
salary plus commission basis.

a. salesmen b. agents c. employees d. employers

C. ACTIVITY

The teacher will group the students into 4, the group will be given 5 minutes to
unscramble or rearrange a scrambled letter to form a word. The definition of this
word will be posted to the blackboard by the teacher in order for the students to
match their answer and place it before it’s definition.

SCRAMBLED LETTERS

GROUP 1: MISONCOSMI

COMMISSION - is a payment based on the percentage of sales of an

agent.
- will help the employer and employees to have a
harmonious relationship within the company
- this will serve as a reward for the employees who will
make a sale.
- It can also be a driving force for the employees to do their
job efficiently and effectively.

GROUP 2: RSAGTIHT

STRAIGHT COMMISSION - is a form of compensation but with no fixed salary of the

agent. It means that it is only the commission of sales that the agent will get from
the company.
 GROUP 3: DETAGUARD

GRADUATED COMMISSION - is a type of commission that the company gives to

their sales agent not in once but in gradual. The commission will increase if
the sale of an agent also increases. This will encourage the agent to sell
more so that they can earn a big commission.

GROUP 4: PASYULRASL

SALARY PLUS COMMISSION - if a person is employed by a firm as a salesman, he or

she is given a basic salary in addition to the commission he or she is given on his or
her sales.

The teacher will give the correct answer.

D. ANALYSIS

ILLUSTRATE TYPES OF COMMISSIONS AND COMPUTE

LESSON COMMISSIONS ON CASH AND INSTALLMENT BASIS

Commission is a payment based on the percentage of sales of an agent.

Commission will help the employer and employees to have a harmonious relationship within
the company. This will serve as a reward for the employees who will make a sale. It can also
be a driving force for the employees to do their job efficiently and effectively.

Formula for the Commission

Commission Rate x Total Amount Sale of the Month

Formula for the Gross Pay for the Month

Commission + Basic Salary

Steps in Computing for the Commission

1. Analyze the problem carefully.

2. Jot down all the given.
3. Write the indicated formula.
4. Substitute the given to the formula.
5. Perform the operations needed.
 Different Types of Commissions

1. Straight Commission
2. Graduated Commission
3. Salary Plus Commission

A Straight Commission is a form of compensation but with no fixed salary of the

agent. It means that it is only the commission of sales that the agent will get from the
company.

EXAMPLE 1 (Straight Commission): Nathaniel works in a company with a

commission only basis. His boss gave him a 3.2% commission on his total monthly sales
without a base salary. Fortunately, Nathaniel made a sale of Php180,000 for the month of
July. How much will be his commission?

Solution: Commission Rate = 3.2% → 0.032 (always make this a decimal

point)
Total Sale = Php180,000

Formula: Commission Rate x Total Amount Sale of the Month

= 0.032 x 180,000
= Php5,760 (the commission that Nathaniel will get for July)

A Graduated Commission is a type of commission that the company gives to their

sales agent not in once but in gradual. The commission will increase if the sale of an agent
also increases. This will encourage the agent to sell more so that they can earn a big
commission.

EXAMPLE 3 (Graduated Commission): Rolando is an agent with a commission of

3% on his first Php150,000 of sales during the month and 2.5% commission on sales above
Php150,000. He happened to have a sale of Php187,000. How much will he earn?

Solution: 1st Commission Rate = 3% → 0.03 (always make this a decimal

point)
1st Sale = Php150,000

2nd Commission Rate =2.5% → 0.025 (always make this a decimal

point)
2nd Sale = Php187,000 – Php150,000 = Php37,000

Formula: Commission Rate x Sale of the Month

 We first need to compute for the first commission that he can get from
Php150,000.

= 0.03 x 150,000
= Php 4,500 (Rolando’s first commission)

Then compute for the commission of the remaining sale.

= 0.025 x 37,000
= Php 925 (Rolando’s commission from the remaining sale)

Add the 1st and 2nd commission to get the final commission for month.

= Php 4,500 + Php 925

= Php 5,425 (Rolando’s total commission)

EXAMPLE 2 (Graduated Commission): Loretta has a monthly commission of 2.6%

on all her total sales. The company gives her 1% commission bonus if she reached a
minimum of Php35,000, another 1% if she also exceeds the minimum of Php75,000. How
much will be her total earnings if she happened to reach sales of Php98,000?

Solution: She automatically has 2.6% from all her sales so,
Php98,000 x 0.026 = Php2,548

Then, compute for her first bonus

Php98,000 – Php35,000 = Php63,000 x 0.01 = Php630

Then another 1% commission for her last bonus which is,

Php98,000 – Php75,000 = Php23,000 x 0.01 = Php230

To compute for total earnings, just add all the commission she will get
Php2,548 + Php630 + Php230
=Php3,408

A Salary Plus Commission if a person is employed by a firm as a salesman, he or

she is given a basic salary in addition to the commission he or she is given on his or her
sales.

EXAMPLE 3 (Salary Plus Commission): Mr. Chan is working in a company with a

minimum salary wage of Php12,000 monthly. On top of his salary, he is expected to sell
appliances worth Php6,000. He can get an additional 3% commission when he exceeds his
expected sales. He fortunately made a sale worth Php13,700. How much will be his gross
pay?

Solution: Commission Rate = 3% → 0.03 (always make this a decimal point)

Monthly Payment = Php 10,000

Formula: Commission Rate x Payment

= 0.03 x Php10,000
= Php300 is his monthly commission.
 = Php300 x 8 months
= Php2,100 is his total commission

A Commission on Installment Basis is a commission not based on sales, but it is a

commission based on the collection or what we call payments by buyers. Installment means
that the buyers didn’t pay all at once.

EXAMPLE 4 (Commission on Installment Basis): Mr. Watson works in a cellphone

shop that offers him 3% commission on every sale he can make. He made a sale worth
Php80,000 that can be paid in an installment of Php10,000 per month for 8 months. How
much will be his monthly commission? How much is the total commission he can get?

Solution: Commission Rate = 3% → 0.03 (always make this a decimal point) Monthly
Payment = Php 10,000

Formula: Commission Rate x Payment

= 0.03 x Php10,000
= Php300 is his monthly commission.
= Php300 x 8 months
= Php2,100 is his total commission

E. Task 2/Ikalawang Gawain: Recitation

DIRECTION: Based on the lesson that we discussed answer the following questions.
This will help you retain all the knowledge that we discussed

1. What are the different types of commissions?

2. Differentiate the three types of commissions.
3. Enumerate the steps in computing for the commission.
F. Abstraction (Practice your learning): HOTS Questions

Task 3/Ikatlong Gawain: Written Work

Direction: On a separate sheet of paper, solve the following problems involving commissions
and computing for commissions.

1. Meredith Grey works in a company that sells furniture. She has been promised of 3.5%
commission on every furniture that she can sell. For this month, she sold a cabinet worth
Php15,500. How much is her commission for this?

2. Mark Sloan’s monthly salary is Php18,000. On top of this, whenever he sells an appliance,
he can get an additional 2.8%. Fortunately, he sold a smart TV that costs Php43,899. How
much will be the total gross pay of Mark Sloan?

G. Application/Paglalapat

Task 4/Ikaapat na Gawain: Performance Task

Direction: Use separate sheets of paper to answer the following items.
Number 1 is done for you!
1. Commission = Total Sales x Commission Rate
 = 1,000 x 0.028
= Php28
TOTAL SALES COMMISSION RATE COMMISSION

Php1,000 2.8% (1) Php28

Php400 3% (2)

Php1,900 (3) Php38

Php13,000 2% (4)

(5) 3% Php300

IV. Task 5/Ika-lima na Gawain: Evaluation

DIRECTIONS: On a separate sheet of paper, answer the following questions.

1. What type of commission is when a sales agent is paid a percentage of sales only?
A. Straight Commission C. Salary Plus Commission
B. Graduated Commission D. None of the Above
2. It is a payment based on the percentage of sales of an agent.
A. Interest B. Gross Pay C. Rate D. Commission
3. All the following are the types of commission, EXCEPT?
A. Interest B. Graduated C. Straight D. Salary Plus
4. This type of commission will encourage the agents to sell more goods.
A. Interest B. Graduated C. Straight D. Salary Plus
5. What type of commission has a basic salary pay for all its agents?
A. Interest B. Graduated C. Straight D. Salary Plus

VI. Assignment

DIRECTIONS: On a separate sheet of paper, answer the problems below.

1. Your boss made a promise that you will get a 3.2% for every sale that you make for her store.
You sold products worth Php17,300. How much will be your commission from this?

2. It is your birthday. The company gives an additional 3% bonus for you and that is on top of
the 7% commission rate for every sale that you can make. Luckily, you sold an item worth
Php135,000. How much will be your commission for this day?
 VII. Reflection/Pagninilay:
Direction: Write the things you have learned in this lesson. On this part, you may answer
in English or in Filipino.
(Panuto: )

I have learned that the different types of commissions are

______________________________________________________________________

_________________________________________________________________________
____.

I have learned that in computing commission in cash and installment basis

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__.

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___.

V. Feedback/Mga Puna ng Guro sa Gawain