Question

Lastima Nelson, Inc. is recruiting a new Chief Financial Officer (CFO). The recruiting budget is $44,000. Lastima has spent $10,000 on advertising and $8,500 on interviewing. The company is willing to pay 6% commission to a broker for selling the new CFO's home. What is the maximum selling price on which the company would pay 6% commission and stay within its budget?

Answer 1

The budget is $44000

Total spent so far is $10000 + $8500 = $18500

The amount left to spend = 44000 - 18500 = $25500

$25500 is the maximum 6% commission that Lastima Nelson Inc. can spend and stays within the budget

Let the maximum price of the home be $x$
This value of $x$ will be the 100% before the 6% commission is calculated of it.

6% of $x$ is 25500
1% of $x$ is 25500 ÷ 6 = $4250
100% of $x$ is 4250 × 100 = $425,000

So, the maximum value of the home is $425,000