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QuestionA salesperson sells 50 acres at \$900/acre with a 10% commission. What's the broker's share after a 60-40 split?

Studdy Solution

STEP 1

Assumptions1. The salesperson gets40% of the commission, the broker gets60%. . The land sold was50 acres.
3. The price per acre was $900.
4. The commission on the sale was10%.

STEP 2

First, we need to find the total sale price of the land. We can do this by multiplying the number of acres by the price per acre.
Total sale price=Number of acrestimesPrice per acreTotal\, sale\, price = Number\, of\, acres \\times Price\, per\, acre

STEP 3

Now, plug in the given values for the number of acres and price per acre to calculate the total sale price.
Total sale price=50 acrestimes$900 per acreTotal\, sale\, price =50\, acres \\times \$900\, per\, acre

STEP 4

Calculate the total sale price.
Total sale price=50 acrestimes$900 per acre=$45,000Total\, sale\, price =50\, acres \\times \$900\, per\, acre = \$45,000

STEP 5

Now that we have the total sale price, we can find the total commission. This can be done by multiplying the total sale price by the commission rate.
Total commission=Total sale pricetimesCommission rateTotal\, commission = Total\, sale\, price \\times Commission\, rate

STEP 6

Plug in the values for the total sale price and the commission rate to calculate the total commission.
Total commission=$45,000times10%Total\, commission = \$45,000 \\times10\%

STEP 7

Convert the percentage to a decimal value.
10%=0.110\% =0.1Total commission=$45,000times0.1Total\, commission = \$45,000 \\times0.1

STEP 8

Calculate the total commission.
Total commission=$45,000times0.1=$4,500Total\, commission = \$45,000 \\times0.1 = \$4,500

STEP 9

Now that we have the total commission, we can find the broker's commission. This can be done by multiplying the total commission by the broker's split.
Broker′s commission=Total commissiontimesBroker′s splitBroker's\, commission = Total\, commission \\times Broker's\, split

STEP 10

Plug in the values for the total commission and the broker's split to calculate the broker's commission.
Broker′s commission=$4,500times60%Broker's\, commission = \$4,500 \\times60\%

STEP 11

Convert the percentage to a decimal value.
60%=0.660\% =0.6Broker′s commission=$4,500times0.6Broker's\, commission = \$4,500 \\times0.6

STEP 12

Calculate the broker's commission.
Broker′s commission=$4,500times0.6=$2,700Broker's\, commission = \$4,500 \\times0.6 = \$2,700The broker's commission after the split was $2,700.

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