GM Lesson 006 Commission and Piecework Earnings

Learning Intentions

By the end of this lesson, students will be able to:

• Calculate earnings based on commission.
• Calculate earnings based on piecework rates.
• Compare different earning structures in practical contexts.

Prerequisites

Students should already be able to:

• Calculate wages from an hourly rate.
• Calculate percentages of quantities.
• Add different types of earnings to find total pay.
• Interpret money values using dollars and cents.

Key Idea Summary

Some workers are paid according to how much they sell or how much they produce.

A commission is a payment based on sales. It is usually a percentage of the sales amount.

A piecework payment is a payment based on the number of items completed.

Some jobs use mixed earning structures, such as:

or

When comparing earning structures, the better option may depend on the number of sales made or items produced.

Direct Instruction and Worked Examples

Timing Allocation

Time Allocation

Time Allocation

• Introduction, warmup and vocabulary: 5 minutes
• Direct instruction: 15 minutes
• Understanding checks: 5 minutes
• Exercises: 20 minutes
• Homework: 20 to 30 minutes outside the lesson it was taught in.

Link to original

Commission Earnings

A commission payment depends on the value of sales made.

If a salesperson earns commission, then they earn of the value of their sales.

Worked Example 1: Commission Only

A salesperson sells furniture worth $4,800 in one week. They are paid commission. Calculate their earnings.

The salesperson earns $288.

Worked Example 2: Base Pay Plus Commission

A sales assistant earns a base wage of $650 per week plus commission on sales. In one week, they make $7,250 in sales. Calculate their total earnings.

The sales assistant earns $940 for the week.

Piecework Earnings

Piecework earnings depend on the number of items made, packed, delivered or completed.

Worked Example 3: Piecework Only

A worker is paid $2.40 for each item they assemble. They assemble items in one day. Calculate their earnings.

The worker earns $324.

Worked Example 4: Comparing Earning Structures

A delivery worker can choose between two payment options.

Option A: $180 per day plus $3.50 per delivery.

Option B: $7.00 per delivery.

On Monday, the worker completes deliveries. Determine which option gives the higher earnings.

For Option A:

For Option B:

Since $327 is greater than $294, Option A gives the higher earnings.

Understanding Checks

Check 1

A worker makes $3,600 in sales and earns commission.

1. What calculation gives the commission?
2. Is the commission more or less than $200?
3. Explain how you know.

Check 2

A fruit picker is paid $18 for each box picked.

1. What does the $18 represent?
2. What calculation would find the earnings for boxes?
3. Would doubling the number of boxes double the earnings?

Check 3

A salesperson earns a base pay plus commission.

Explain why the commission must be calculated before the total earnings can be found.

Check 4

Two workers are paid using different systems.

• Worker A earns $500 plus commission.
• Worker B earns commission only.

Explain why Worker A might earn more for low sales, but Worker B might earn more for high sales.

Exercises

Simple Familiar Exercises

Exercise 1

A salesperson sells $2,000 worth of goods and earns commission. Calculate the commission.

Exercise 2

A salesperson sells $6,400 worth of goods and earns commission. Calculate the commission.

Exercise 3

A worker is paid $4.20 for each item packed. They pack items. Calculate their earnings.

Exercise 4

A worker is paid $1.75 for each brochure delivered. They deliver brochures. Calculate their earnings.

Exercise 5

A salesperson earns a base wage of $720 plus commission. They make $9,500 in sales. Calculate their total earnings.

Exercise 6

A factory worker earns $250 per day plus $3.80 for each unit completed. They complete units. Calculate their total earnings.

Complex Familiar Exercises

Exercise 7

A real estate agent earns commission on a property sale. The property sells for $640,000.

Calculate the commission earned.

Exercise 8

A salesperson earns $600 per week plus commission on sales above $4,000.

In one week, they make $9,200 in sales.

Calculate their total earnings.

Exercise 9

A fruit picker is paid $12.50 per crate for the first crates and $15.00 per crate for each crate after that.

They pick crates in one day.

Calculate their total earnings.

Exercise 10

A worker can choose between two payment options.

Option A: $220 per day plus $2.50 per item.

Option B: $5.50 per item.

The worker completes items.

Determine which option pays more and by how much.

Exercise 11

A salesperson earns commission on the first $10,000 of sales and commission on any sales above $10,000.

They make $16,500 in sales.

Calculate their total commission.

Exercise 12

A delivery driver is paid $160 per day plus $6 per delivery. Another company offers $12 per delivery with no base pay.

For deliveries, compare the two payment options.

Homework Problems

Problem 1

A salesperson earns commission on sales. They sell $12,400 worth of goods.

Calculate their commission.

Problem 2

A worker is paid $6.25 for each item completed. They complete items.

Calculate their earnings.

Problem 3

A salesperson earns $580 per week plus commission. They make $11,750 in sales.

Calculate their total earnings.

Problem 4

A delivery driver is paid $190 per day plus $5.50 per delivery. They complete deliveries.

Calculate their total pay.

Problem 5

A worker can choose between two payment options.

Option A: $300 per day plus $3 per item.

Option B: $8 per item.

They complete items.

Determine which option pays more.

Problem 6

A salesperson earns commission on the first $8,000 of sales and commission on sales above $8,000.

They make $13,500 in sales.

Calculate their total commission.

Problem 7

A piecework employee is paid $4.50 per item. They want to earn at least $360.

Determine the minimum number of whole items they must complete.

Problem 8

A worker is comparing two weekly pay plans.

Plan A: $750 plus commission.

Plan B: $450 plus commission.

For sales of $14,000, determine which plan pays more and by how much.

Next: GM Lesson 007 Income Support Payments