Ask Question
BusinessBusiness
18 October, 04:54

An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000. What was the price of a painting for which the house charged a total commission of $24,000? A. $115,000B. $160,000C. $215,000D. $240,000E. $365,000

+1
Answers (1)
  1. 18 October, 05:04
    0
    C. $215,000

    Explanation:

    The statement indicates that on the first $50,000 the auction house charges 15%, which means that for the first $50,000 the house charged:

    $50,000*0,15% = $7,500

    From the total commission of $24,000, $7,500 were for the first $50,000.

    $24,000-$7,500 = $16,500

    Now, you have to determine the amount in excess of $50,000 from which the house charged the remaining $16,500. So, you have that an x amount multiplied for 10% or 0,10 is equal to $16,500:

    x*0,10 = 16,500

    x = 16,500/0,10 = 165,000

    You have determined that the house charged $7,500 on the first $50,000 and $16,500 on $165,000 which means that the price of the painting is:

    $50,000+$165,000 = $215,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
John and Mark hold equivalent secretarial jobs, but John, who makes 20 percent more than Mark, is employed by a manufacturing firm while Mark is employed by a department store.
Answers (1)
Marshall Company purchases a machine for $200,000. The machine has an estimated residual value of $80,000. The company expects the machine to produce four million units. The machine is used to make 440,000 units during the current period.
Answers (1)
Washington Enterprises had net income for 2016 of? $103,000. Washington had? 39,000 shares of common stock outstanding at the beginning of the year and? 43,000 shares of common stock outstanding at the end of the year.
Answers (1)
the most direct way for jonathan to gain on-the-job experience and earn money while attending school is to apply for:
Answers (2)
In a free-market economy, a product that entails a positive externality (additional social benefit) will be rev: 04_09_2018 Multiple Choice overproduced. 1. underproduced. 2. produced at the optimal level. 3. provided solely by the government
Answers (1)
New Questions in Business
If someone pays medical expenses directly to the provider, such as a doctor or hospital, what percentage of the gift is exempt from gift tax?
Answers (1)
All else equal, active retention is a good option for firms: a. That have highly liquid assets b. That do not have a lot of debt c. Whose losses are predictable d. all of the above e. none of the above
Answers (1)
Sheffield Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs.
Answers (1)
Macrosoft Company reports net income of $65,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $60,000, $12,000, and $18,000, respectively.
No Answers
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
Home » Business » An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000.
Sign Up Forgot Password?