Commission

Commission is the amount of money paid to a person or an organization for selling goods or services on behalf of another person or organization.

 A fee paid for services, usually a percentage of the total cost.

Example 

A salesman sells goods worth Sh 25 000 and is paid a commission of Sh 4 000. Calculate his percentage commission.

Solution

Percentage commission = commission / sales X 100

= (4,000 / 25,000) X 100

= 16%

KCPE Topical Questions

Commission and percentage commission

1. A salesman receives of the selling price as commission for the first 100 articles he sells. He also gets a 2.5 % commission for the first 1000 articles. Each article is sold at sh 20.00. What commission does he get after selling 2000 articles?

A. Sh 600     B. Sh 700    C. Sh 1400      D. Sh 35

 

2. A salesman earns a basic salary of sh 500 per month plus 5 % commission for the sale of goods above sh 4000. In one month he sold goods worth sh 8000. How much did he earn that month altogether?

A. Sh 4700     B. Sh 4500     C. Sh 4300      D. Sh 3800

 

3. A salesgirl earns a salary of sh 1000 per month. She is also paid a commission of 3 % of the value of items she sells above sh 10000. In one month, she sold items worth sh 68500. How much money did she earn that month?

A. 1755     B. 2755     C. 3055      D. 3355

 

4. Auma earns a basic salary of sh 2500 from a creamery. She is also paid a 0.25 % commission for any sales above sh 30000. In one month she sold 100000 packets of milk at sh 13 per packet. What was her total earnings that month?

A. Sh 3175    B. Sh 320000    C. Sh 5675      D. Sh 5750

 

5. A car was sold at sh 100000 through a dealer. The dealer charged the owner a 10 % commission on the selling price. How much did the owner get?

A. Sh 10000    B. Sh 90000   C. Sh 99990     D. Sh 110000

 

6. A sales-girl earns a basic salary of sh 4000. She is also paid a commission of 3 % of the value of items sh sells above sh 10000. In one month she sold 2000 items at sh 20 each. What was her total earning that month?

A. Sh 5200    B. Sh 4900    C. Sh 4060    D. Sh 900

 

7. A vehicle was sold for sh 2250000 through a dealer. The owner received sh 2000000. What percentage commission did the dealer get?

A. 11.1 %     B. 12.5 %     C. 88.8 %      D. 112.5 %

 

8. A salesgirl was given a 5 % commission by a businessman after selling for him goods worth sh 50000. How much money did the businessman get?

A. Sh 2500     B. Sh 47500     C. Sh 49995     D. Sh 52500