Question

A broker was paid a commission of 6% of the first $120,000 of a sale price and 4% of all over $120,000. What would the sale price be if the total commission was $9,000?

Answer 1

The sale price be if the total commission was $9,000 would be $165000.

What is commission?

• A type of variable-pay compensation for goods or services sold are commissions.
• Salespeople are frequently encouraged and rewarded with commissions.
• Additionally, commissions can be created to promote particular sales habits.
• For instance, commissions may be decreased while providing significant discounts.
• Or commissions might be raised when promoting particular goods that the company wishes to sell.
• The framework of a sales incentive programme, which may comprise one or more commission plans, is where commissions are normally administered (each typically based on a combination of territory, position, or products).

• As a strategy for businesses to try to realign employee interests with those of the company, payments are sometimes calculated as a proportion of revenue.

The broker's 6% commission came to $7,200 (.06 x $120,000). Subtracted from the total commission of $9,000, it leaves an additional balance of $1,800.

Since that portion was paid at the rate of 4%, dividing $1,800 by .04 yields the home's second cost component of $45,000. Add that to $120,000 and the home's total selling price was $165,000.

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