Question

Earl Miller, a lawyer, charges Lee’s Plumbing, his client, 25% of what he can collect for Lee from customers whose accounts are past due. The attorney also charges, in addition to the 25%, a flat fee of $50 per customer. This month, Earl collected $7,000 from three of Lee’s past-due customers. What is the total fee due to Earl?

Answer 1

Answer:

The answer is $1,900

Explanation:

Earl collected $7,000 from three clients, and his commission is 25%, therefore his commission on $7,000 is:

25%(0.25) x 7,000= $1,750.

Also, Earl charged a flat fee of $50 per customer, and he from three of Lee's past-due customers, therefore, his fee for this is:

50 x 3 = $150

Earl's total fee therefore will be:

1,750 + 150 = $1,900