Question

A dealer paid $10,000 for a boat at an auction. At the dealership, a sales person sold the boat for 30% more than the auction price the sales person received a commission of 25% of the difference between the auction price and the dealer price. What was the sales person's commission?

Answer 1

Answer: the commission received by the salesperson is $576.9225

Step-by-step explanation:

Let x represent the auction price

At the dealership, a sales person sold the boat for 30% more than the auction price. It means that the amount for which he sold the boat is

x + (30/100 × x)

= x + 0.3x = 1.3x

If the dealer paid $10,000 for a boat at an auction, it means that

1.3x = 10000

x = 10000/1.3

x = 7692.31

The difference between the auction price and the dealer price is

10000 - 7692.31 =$2307.69

The sales person received a commission of 25% of the difference between the auction price and the dealer price. It means that the commission received by the salesperson is

25/100 × 2307.69 = $576.9225