A salesman brings in a listing on a 500 thousand dollar home and will receive 15% of the total 5% commission from the sale of the home.
If another salesman is involved in the sale and sells the house and the 15% is deducted from his half of the commission, how much will he receive from the sale of the home ?
Let's first find out what the commission is on 500,000 dollars by multiplying 5% or .05 times 550k, and we get 25,000 dollars.
Let's now multiply 25k times 15% or .15 of the total to derive the amount due the salesman from the total commission and we get $3750 which is 15% of the total commission.
Since half of 25k is 12.5k for the 50/50 split, let's subtract the 15% of the total commission, $3750, from the commission due the cooperating salesman and we get $8750, which is the amount the cooperating salesman receives after deducting the 15% amount of the total commission from his half of the commission.
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