Question

A house sold for $950,000 with a sales commission rate of 7.5%. The listing brokerage received 50% of the total commission and the selling brokerage received 50%. How much would the selling salesperson receive if the selling brokerage kept 60% and gave 40% to the salesperson?

Answer 1

Answer:$14,250

Explanation:

The total commission recieved is

950,000 x 7.5% = $71,250

The listing brokerage and the selling brokerage both received 50% of that sum which is

71,250/2 = $35,625

The Sales person gets 40% of the Selling brokerage's cut which would be

35,625 x 40% = $14,250