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Commission Formula:
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The commission system was a form of municipal government popular during the Progressive Era (1890s-1920s) where elected commissioners were responsible for specific city departments and received compensation based on revenue generated. This calculator helps determine the commission amounts based on revenue and predetermined rates.
The calculator uses the commission formula:
Where:
Explanation: The formula calculates the commission amount by multiplying the revenue by the commission rate percentage.
Details: Accurate commission calculation was crucial during the Progressive Era to ensure fair compensation for government officials while maintaining transparency in municipal finances. This system aimed to reduce corruption by tying compensation directly to measurable outcomes.
Tips: Enter the total revenue amount in dollars and the commission rate as a percentage. Both values must be positive numbers (revenue > 0, rate between 0-100).
Q1: Why was the commission system implemented during the Progressive Era?
A: It was designed to make government more efficient and businesslike, with officials compensated based on performance rather than fixed salaries.
Q2: What were typical commission rates during this era?
A: Rates varied but typically ranged from 1% to 10% depending on the department and municipality.
Q3: How did this system differ from previous compensation methods?
A: Previously, officials often received fixed salaries or fees for services, which could lead to inefficiency or corruption.
Q4: What were the limitations of the commission system?
A: It could incentivize revenue generation over public service, and rates needed careful calibration to avoid excessive compensation.
Q5: Is this system still used today?
A: While some elements remain, most modern governments use modified systems with base salaries plus performance incentives.