Diane Duncan, a saleswoman, is working on a 50/50 split commisssion basis with your brokerage.
She sells a property for 15% less than the listing price of $1,700,000.
The commission schedule with your brokerage calls for 6% on the full selling price of the listing.
Diane has to pay another salesman, Mickey Mogle, 20% of her share of the commisssion.
What is the net amount that Diane will receive for the sale ?
Answers and solutions are posted below the wildlife photos. Please take your time.
Let's find out what the property sold for at 15% less than the asking price by first subtracting 15% from 100%, which leaves us with 85% or .85.
Now let's multiply .85 time 1.7 million and we find that the property sold for $1,445,000.
Next, let's find out what the commission was on the property at 6% by multiplying .06 times $1,445,000 and we see that the total commission at 6% was $86,700.
Since your brokerage is working on a 50/50 split divide $86,700 by 2 or multiply times .5 and we get a total commission due diane of $43,350.
Since she has to pay Mickey Mogle 20& of the commission she received from the sale of the property, multiply 43350 times 20% or .2 and we see that she has to pay Mr.Mogle $8670.
Subtract $8670 from Diane's total commission return of $43,350 and we find that Diane is left with a net return on her commission of $34,680.
No argument here !
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