Math 7 · Unit 2, Lesson 3: Tax, Tips, and Fees · Tile 3 of 3

Fees and Commission

One adds on, one does not

Finn reads this

A fee is added to what you pay, like tax. Commission looks like a percent too, but it works differently.

A fee adds on

Finn reads this

A concert ticket is $50 and there is a 12 percent service fee. The fee is 12 percent of $50, which is $6, so the ticket costs $56. One step: 50 times 1.12 is $56.

fee: $50 × 0.12 = $6total: $50 + $6 = $56 = $50 × 1.12

Commission does not

Elle reads this

Commission is not added to what the customer pays. It is the share of a sale that the salesperson earns. A salesperson sells $1,200 of shoes and earns 5 percent commission: 1,200 times 0.05 is $60. The customers still paid $1,200. The $60 comes out of that, as the salesperson's pay.

commission: $1,200 × 0.05 = $60the customers paid: $1,200

ElleMath-speak

Commission is a percent of total sales paid to the salesperson.

FinnPlain English

The customer does not pay extra. The salesperson gets a slice of the sale.

Added on, or not?

Finn reads this

The question to ask every time: is this percent added to what the customer pays?

Let me try a few

NC standards: NC.7.RP.3.

Where to go next

Let me try a few5 problems on fees and Commission. All tilesAll 3 parts of this lesson. Tell us what you thought about this tileA few quick questions about just this tile. It takes a few minutes, and opens in a new tab so you keep your place.