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10 July, 19:03

A salesperson is. On 50/50 split with an agency and sells a 300 acare farm at 1200 per acre. The commission schedule calls for %5 on the first $200000 3 1/2% on the next $50000 and 2% on the balance the realty company must pay the list agent %10 of the gross commission. The net amount the salesperson will receive is:

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  1. 10 July, 19:16
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    Answer: $49,950

    Step-by-step explanation:

    Given dа ta:

    Land sold = 300acre

    Cost of land = $1200/acre

    Commission schedule = 5% on first $200,000, 3.5% on next $50,000 and 2% on the balance.

    10% gross commission must be paid to the agent.

    Therefore

    1. Total amount generated by the agent

    = Cost/acre * acre sold

    = $1200 * 300

    = $360,000

    10% gross commission receivable by the agent

    = 0.1 * $360,000

    = $36,000

    5% receivable for first $200,000

    = 0.05 * $200,000

    = $10,000

    3.5% receivable on next $50,000

    = 0.035 * $50,000

    = $1,750

    2% receivable on remaining balance

    = 0.02 * $110,000

    = $2,200

    Net amount receivable by the salesperson

    = $36,000 + $10,000 + $1,750 + $2,200

    = $49,950
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