Question

A real estate agent is paid $200.00 a month salary and a 2 ½ % commission on everything sold over $150,000 in one year. If the agent makes $22,000 one year. How much did the agent sell?

Answer 1

$934,000

Step-by-step explanation:

the agent's yearly salary = $22,000

he/she received $200 x 12 = $2,400 in monthly salaries

he earned = $22,000 - $2,400 = $19,600 in sales commissions

this sales commission represents = $19,600 / 2.5% = $784,000 in sales above $150,000

the agent's total sales = $150,000 + $784,000 = $934,000

Answer 2

Agent's Sale for the month is $1,022,000

Step-by-step explanation:

The payment has fixed portion of $200 and Variable portion of commission 2.5% on sales value over $150,000.

Total payment for the month = $22,000

Variable portion of Sale = $22,000 - $200 = $21,800

$21,800 is associated with the 2.5% of commission on sale over $150,000

Sales over $150,000 = $21,800 / 2.5% =

Total Sales = $150,000 + 872,000 = $1,022,000