alleryStart learning →How is a commission calculated?
AMultiply the rate of commission by the total sales
BAdd the rate of commission to the total sales
CDivide the total sales by the rate of commission
DSubtract the rate of commission from the total sales
Answer & Solution
Correct answer: A. Multiply the rate of commission by the total sales
1. A commission is a percentage of total sales.
2. Finding a percentage of an amount means multiplying that percent, changed to a decimal, by the amount.
3. So the commission equals the rate of commission multiplied by the total sales.
4. Adding, dividing, or subtracting the rate does not correctly apply a percentage to the total sales.
_Source: OpenStax Prealgebra (CC BY 4.0), Ch 6 "Percents", section 6.3 Solve Sales Tax, Commission, and Discount Applications_
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