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
