Nobody gets paid on profit the job never earned.
Net sale, after credits.
Subs, equipment, freight and permits fixed at $4,500.
Total cost$26,700
Overhead at 19%$7,695
What the job madeMargin 15.1%$6,105
Commission SystemX pays · 35% of profit$2,137
A percentage-of-sale plan pays · 8% of sale$3,240
Paid on profit the job never earnedThe gap the rule closes.$1,103