Question

A salesperson is. On 50/50 split with an agency and sells a 300 acare farm at 1200 per acre. The commission schedule calls for %5 on the first $200000 3 1/2% on the next $50000 and 2% on the balance the realty company must pay the list agent %10 of the gross commission. The net amount the salesperson will receive is:

Answer 1

Answer: $49,950

Step-by-step explanation:

Given Data:

Land sold = 300acre

Cost of land = $1200/acre

Commission schedule = 5% on first $200,000, 3.5% on next $50,000 and 2% on the balance.

10% gross commission must be paid to the agent.

Therefore

1. Total amount generated by the agent

= Cost/acre * acre sold

= $1200 * 300

= $360,000

10% gross commission receivable by the agent

= 0.1 * $360,000

= $36,000

5% receivable for first $200,000

= 0.05 * $200,000

= $10,000

3.5% receivable on next $50,000

= 0.035 * $50,000

= $1,750

2% receivable on remaining balance

= 0.02 * $110,000

= $2,200

Net amount receivable by the salesperson

= $36,000 + $10,000 + $1,750 +$2,200

= $49,950