Darren Terry's Commission Calculation

What is the commission amount that Darren Terry will be paid based on the given data?

The commission paid to Darren Terry will be $3,000.00.

Calculating Darren Terry's Commission

To calculate the commission paid to Darren Terry, we use the formula: Commission = Gross Sales × Commission Rate Given that the gross sales for the month are $60,000.00 and the commission rate is 5%, we can plug in these values: Commission = $60,000.00 × 0.05 = $3,000.00 So, Darren Terry will receive a commission of $3,000.00 for the month. The commission is calculated as a percentage of the gross sales, which is the total amount of sales before any deductions. In this case, since the commission rate is 5%, Darren's commission is 5% of the $60,000.00 in gross sales. Commission agents like Darren earn a percentage of the sales they help facilitate, providing an incentive for them to work on increasing the company's sales.
← Reasons for choosing an s corporation over a sole proprietorship The exciting calculation of cost of capital for a firm →

More Posts: