Did you know?
In a car dealership, the commission structure can play a significant role in determining earnings for salespeople. For instance, if you sold a $9,000 car and the dealership offers a 4% commission on the first $8,000 and 8% on the amount exceeding $8,000, you can calculate your commission. By subtracting the initial $8,000 from the total car sale value ($9,000 - $8,000 = $1,000), you obtain the amount eligible for the higher commission rate. So, at 8%, your commission would be $80 ($1,000 * 0.08). Factoring in the commission for the initial $8,000 ($8,000 * 0.04 = $320), the sum of the two commissions equals $400. Understanding commission structures is key to determining potential earnings in sales roles!
