1) A commission is the amount of money a salesperson earns based on the __________. a) total sales made b) number of buyers c) hours worked d) cost of goods 2) The rate of commission is usually expressed as a __________. a) percentage of sales b) fixed peso amount c) discount on the product d) deduction from salary 3) Under the cash basis method, when does a salesperson earn the commission? a) After the customer pays in full b) Immediately after making a sale c) After receiving the product d) When the manager approves the sale 4) In an installment basis (proportional) commission, the salesperson receives commission __________. a) every time the buyer pays a part of the total b) only when the customer pays in full c) once at the end of the month d) before the customer pays 5) A commission serves as a salesperson’s __________. a) reward or incentive for selling b) refund for expenses c) penalty for low sales d) deduction from salary 6) A cellphone costs ₱12,000. If the salesperson earns a 10% commission on cash sales, how much is the commission? a) ₱1,200 b) ₱1,000 c) ₱1,500 d) ₱1,250 7) A refrigerator worth ₱20,000 was sold on cash basis. If the commission rate is 8%, how much will the agent earn? a) ₱1,600 b) ₱1,800 c) ₱2,000 d) ₱2,200 8) A laptop worth ₱30,000 is payable in 10 equal monthly installments. Commission rate is 5%. If the buyer has paid 4 months so far and commission is paid proportionally, how much commission has the agent earned? a) ₱600 b) ₱1,200 c) ₱1,500 d) ₱900 9) A motorcycle selling price is ₱80,000 with a 12% commission, payable in 8 equal installments. Under proportional installment basis, how much commission does the dealer receive per month? a) ₱1,200 b) ₱960 c) ₱800 d) ₱1,000 10) An oven sold for ₱15,000 with a 5% commission. The buyer has paid half of the price. If commission is proportional, how much commission should the salesperson receive now? a) ₱375 b) ₱500 c) ₱750 d) ₱600

Computing Commissions on Cash Basis and Installment Basis

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