Let's go through this step by step: The salesperson sells the car for 25% more than the auction price, which is $15,800 + $15,800 * 25% = $19,750. This is the markup price. The salesperson gets a 25% commission on the <u>difference</u> between the markup price and the original price. The difference between the markup and the original is $19,750 - $15,800 = $3,950. 25% of this amount is $987.50
