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A house sold for $95,000 with a sales commission rate of 7.5%. The listing broker received 50% of the total commission and the selling broker received 50%. How much would the selling salesperson receive if the selling broker kept 60% and gave 40% to the salesperson?

A. $2,850
B. $3,400
C. $3,750
D. $4,200

User Gudrun
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1 Answer

3 votes

Final answer:

The selling salesperson would receive $1,425, which is 40% of the selling broker's commission. However, this value is not listed in the provided answer options, suggesting there may be an error in the options given.

Step-by-step explanation:

To calculate how much the selling salesperson would receive, we first need to determine the total sales commission for the house that sold at $95,000 with a commission rate of 7.5%. The total commission is calculated by multiplying the sale price by the commission rate.

Total commission = Sale price × Commission rate
Total commission = $95,000 × 0.075
Total commission = $7,125

Since the listing and selling brokers each receive 50% of the commission, the amount received by the selling broker is half of the total commission.

Selling broker's share = Total commission ÷ 2
Selling broker's share = $7,125 ÷ 2
Selling broker's share = $3,562.50

The selling broker keeps 60% and gives 40% to the salesperson, so the salesperson's share is 40% of the selling broker's share.

Selling salesperson's share = Selling broker's share × 0.40
Selling salesperson's share = $3,562.50 × 0.40
Selling salesperson's share = $1,425

Therefore, the selling salesperson would receive $1,425, which is not an option provided in this case, indicating a possible mistake in the options given.

User KoenJ
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