# commission question

• Sep 16th 2005, 03:40 PM
bingazoo
commission question
doug wilson earned a commission of \$2036.88 for March. If his rate of commission is 11.25% of net sales, and returns and allowances were 8% of gross sales, what were Doug's gross sales for the month?
• Sep 16th 2005, 04:51 PM
ticbol
I don't fully understand this question as posted because I am not an Accountant or Economist or anybody who deals with accounting.
I will solve it as I understand the question. My understanding might not be correct, but this solution is still based on my understanding.

Four terms are mentioned: commission on Net sales, retuns, allowances, and gross sales.
Based on those, my understanding is
Net sale = (gross sale) minus (returns plus allowances)
So,

Net sales = (100 -8)% of Gross sales
Net = 92% of Gross ----***

\$2036.88 = 11.25% of Net
2036.88 = 11.25% of (92% of Gross)
2036.88 = (0.1125)(0.92)Gross
Gross = (2036.88) / (0.1125)(0.92)
Gross = \$19,680.00 ---------------answer.
• Sep 16th 2005, 10:35 PM
bingazoo
thanks for help
thank you for all the help. it makes complete sense now that you put it into propectives like that, thanks again, i will probably have alot more as the year moves on haha, so hopefully i'll be hearing from you again on my next problem, take care