Which term describes a percentage of a sale price paid to a salesperson?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the PSAT 8/9 Math Test. Engage with flashcards and multiple-choice questions, featuring hints and explanations for each question to help you succeed. Be exam-ready!

Multiple Choice

Which term describes a percentage of a sale price paid to a salesperson?

Explanation:
This is about how a salesperson is paid when a sale closes. A commission is a payment to the salesperson that is a percentage of the sale price. This setup makes the earnings of the salesperson rise or fall with how much they sell, which motivates them to close more deals. For example, if a product sells for $2,000 and the commission rate is 6%, the salesperson earns $120. Taxes are government charges on the sale or income, tips are voluntary gratuities from customers, and a fee is a fixed charge for a service; none of these are the standard percentage-based pay that commission describes.

This is about how a salesperson is paid when a sale closes. A commission is a payment to the salesperson that is a percentage of the sale price. This setup makes the earnings of the salesperson rise or fall with how much they sell, which motivates them to close more deals. For example, if a product sells for $2,000 and the commission rate is 6%, the salesperson earns $120. Taxes are government charges on the sale or income, tips are voluntary gratuities from customers, and a fee is a fixed charge for a service; none of these are the standard percentage-based pay that commission describes.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy