Question

A broker lists a motel for $1,450,000 with a commission structure. If the broker pays 55% of the total commission, what is the sales associate's commission if the property is sold?

A) $72,500
B) $100,100
C) $105,000
D) $116,000

Answer 1

To calculate the sales associate's commission, we need the commission rate applied to the motel's sale price of $1,450,000. Without it, none of the provided options can be verified against the unrelated financial examples provided.

Step-by-step explanation:

The question involves calculating the sales associate's commission from a property sale, based on a percentage of the total commission kept by the broker. Assuming the total commission is 100%, and the broker retains 55%, this implies the sales associate receives the remaining 45%.

However, the question does not provide the commission rate, so we cannot calculate the exact amount of the sales associate’s commission from the information given. To solve this problem, we would need to know the percentage of the sale price ($1,450,000) that represents the total commission. Without this critical piece of information, none of the provided options (A) $72,500, (B) $100,100, (C) $105,000, (D) $116,000 can be confirmed as correct.

We can conclude that the data provided ($15 million, $20 million, $25 million, and various discounted cash flow calculations) are not relevant to determining the sales associate's commission for the sale of the motel at the specified listing price. Therefore, additional information is necessary to accurately answer this question.