COMMISSION
is a percentage paid for buying or selling real estate, goods, etc. A consignment is a quantity of goods, sent to an agent, broker or commission merchant, for sale. The consignor is the one who sends the goods, the consignee the one to whom they are sent.
Principles:
1. The commission is some number or per cent of the price of what is bought or sold.
2. The proceeds equal the selling price minus the commission.
3. The amount equals the selling price plus the commission.
Commission presents two classes of problems. One of these classes may be called “buying problems.” The other may be called “selling problems.”
Buying Problem: I sent my agent $1977.60 to buy wild farm lands in northern Wisconsin, at $3 per acre. He was to receive 3% for his work. How many acres did he buy?
Work and Explanation:
3% of $3 = $.09.
Cost to me of 1 acre is $3 + .09 = $3.09