Do Now

Your turn (silent)

1. What is time-and-a-half for someone earning $26/hour?

2. Calculate: Zoe earns $28/hour. She worked 38 normal hours and 4 hours overtime at double time. Total pay?

3. Think: Why might some workers prefer to be paid based on how much they sell rather than by the hour?

Notes: During this lesson, if you’re waiting and know what you’re doing, start Ex 8.03

Learning Goals

By the end of today’s lesson, you will be able to:

• Define commission, piecework and bonuses
• Calculate earnings using these payment methods
• Distinguish between commission and piecework
• Solve problems involving hybrid payment structures

Three New Ways to Get Paid

Watch and listen

Beyond wages and salaries, workers can earn money through:

1. Commission - Payment based on sales
2. Piecework - Payment per item made/completed
3. Bonuses - Extra payment for meeting goals

Each motivates workers differently!

Commission

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Commission = Payment based on the value of what you sell

• Usually a percentage of sales
• Common in retail, real estate, car sales
• Example: 5% commission on all sales

Why use commission?

Commission Example

Watch and listen

Example: Jake sells sports equipment at Rebel Sport. He earns 8% commission.

This week Jake sold:

• Running shoes: $2,500
• Tennis racquets: $1,800
  
• Team uniforms: $3,200

Total sales = $7,500 Commission = $7,500 × 0.08 = $600

Piecework

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Piecework = Payment per item produced or task completed

• Common in manufacturing, farming, delivery
• Example: $2 per item assembled

Why use Piecework?

Piecework Example

Watch and listen

Example: Maria makes cricket balls at a factory. She earns $3.50 per ball.

Monday: 42 balls Tuesday: 38 balls Wednesday: 45 balls Thursday: 40 balls Friday: 35 balls

Total = 200 balls Earnings = 200 × $3.50 = $700

Commission vs Piecework

Let’s compare

Quick Check: Commission or piecework?

Your turn (silent)

Bonuses

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Bonus = Extra payment for achieving specific goals

Examples:

• Sales targets: “Sell 50 items, get $500 bonus”
• Performance: “Team wins championship, players get $10,000”
• Attendance: “No sick days for 6 months, get $200”

Bonuses are ON TOP of regular pay!

Guided Practice: Commission

Let’s work together

Amy works at JB Hi-Fi selling electronics. She earns 6% commission.

Today she sold:

• Gaming console: $750
• Headphones: $250
• Laptop: $1,500

Calculate Amy’s commission for today.

Independent Practice

Complete independently

1. Piecework: Tom delivers newspapers, earning $0.15 per paper. This week he delivered 850 papers. Calculate his earnings.

2. Commission: Sophie sells gym memberships at 12% commission. This month she sold $8,500 worth of memberships. Calculate her commission.

3. Bonus: Lee earns $25/hour at a bike shop. He worked 38 hours and sold 15 bikes (target was 10), earning a $200 bonus. Calculate total pay.

Hybrid Pay: Salary + Commission

Watch and listen

Many sales jobs combine base salary with commission:

Example: Phone plan salesperson

• Base salary: $40,000/year
• Commission: 4% of all sales

This provides: ✓ Security (guaranteed income) ✓ Motivation (earn more by selling more)

Hybrid Pay Calculation

Watch and listen

Example: Ben sells sporting goods

• Base: $600/week
• Commission: 5% of sales

This week’s sales: $12,000

Weekly pay = Base + Commission Weekly pay = $600 + ($12,000 × 0.05) Weekly pay = $600 + $600 Weekly pay = $1,200

Tiered Commission

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Tiered commission = Different rates at different sales levels

Example:

• First $10,000: 5% commission
• Next $10,000: 8% commission
  
• Above $20,000: 10% commission

Higher sales = Higher commission rate!

Tiered Commission Example

Watch and listen

Example: Car salesperson with $25,000 in sales

• First $10,000 at 5% = $500
• Next $10,000 at 8% = $800
• Last $5,000 at 10% = $500

Total commission = $500 + $800 + $500 = $1,800

Complex Practice

Work in pairs

Real-World Application

Think and discuss

You’re offered two jobs at a sports store:

Job A: $25/hour for 38 hours/week

Job B: $400/week base + 10% commission (Average weekly sales: $6,000)

Which would you choose and why?

Summary

Copy these key points

Payment Methods:

• Commission: Percentage of sales value (selling jobs)
• piecework: Fixed amount per item (making/delivering)
• Bonus: Extra pay for meeting targets
• Hybrid: Combines base pay + commission

Remember: Commission uses percentages, piecework uses fixed amounts!

Exit Ticket

Your turn (silent)

1. Is this commission or piecework? “Sarah earns $2.50 for each scarf she knits”

2. Calculate: David sells football boots. He earns 9% commission and sold $4,000 worth this week. What’s his commission?

3. Emma has a base salary of $700/week plus 5% commission. She sold $10,000 this week. Total pay?