Saturday, June 7, 2014

The Language of Business Part 3

The problems in commission are actually percentage problems in which the elements are: Commission or brokerage is percentage, rate of commission or brokerage is rate and purchase price, sales price or amount collected, whichever is the case, is the base.
The simplest type of commission problem involves is finding the commission when the rate of commission is a uniform amount for each item transacted. Example: A newsboy receives $.15 for each Weekly Women’s Magazine that he sells. What is the amount of his commission, if he sells 125 copies? Solution: 125 x $0.15 = $18.75.
It is normal to customers that before they purchase products or services from business firms – first they would request quotations for the prices of particular products and services they needed. Customers are normally looking for good quality and with the lowest prices of products. So, they go from one company to another company to check them out and to compare products prices.
Customers need fast action when they requested the quotations of the prices for the products and services they needed, they wanted them at once. They cannot wait for long – their reasons - there are other companies who also sell the same products and services they needed.
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