Question

Two Brokers decide to go broke 60/40 in favor of the listing broker, and each broker split 50 Dash 50 with his sales person. How much will the listing sales person make if the house is sold for $134,500 & commission rate is 6%?

Answer 1

To calculate the earnings of the listing salesperson, multiply the selling price of the house by the commission rate, then split the commission between the brokers according to the 60/40 split.

Step-by-step explanation:

To calculate the earnings of the listing salesperson, we need to follow a series of steps. First, we need to determine the total commission earned from the sale of the house. To do this, we multiply the selling price of the house ($134,500) by the commission rate (6% or 0.06), which equals $8,070. Next, we need to split this commission between the brokers according to the 60/40 split. The listing broker will receive 60% of the commission, which is $4,842, and the salesperson will receive 50% of this amount, which is $2,421.