Question

Wella is a salesperson working for Broker Vincent. Wella sells a $150,000 home listed with another brokerage. The listing commission is 6.5 percent of the selling price. Of this amount, 5 percent is payable to the referral network that referred the buyer, 35% goes to the listing broker, and 60% belongs to the cooperating broker. Broker Vincent and Wella agreed that she would receive 55% of any commission that she generated for their office. For this transaction, she is entitled to receive _____

Answer 1

Answer:

She is entitled to receive $3217.50 commission

Explanation:

The computation of commission is shown below:

= Selling cost × listing commission × cooperating broker's commission × Wella's commission

= $150,000 × 6.5% × 60% × 55%

= $3217.50

The 5% referral network percentage and the listing broker percentage should not be considered in the computation part. Hence, it is ignored.