Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement). During the
Month of July, Lawrin sold two houses totaling $385,420. What is her gross pay for the month of July?

Question

Quizplus · Accepted Answer

Lawrin's commission for selling the two houses is 3% of $385,420, which is $11,562. While Lawrin receives 1.5% commission for each house sold at the end of the month. So, for the two houses, Lawrin will get 1.5% of $385,420, which is $5,781.30. Therefore, her gross pay for the month of July will be $11,562 + $5,781.30 = $17,343.30. However, since the question is asking for Lawrin's gross pay, we don't need to deduct the broker's share. Therefore, the best choice is C.

Lawrin Is a Real-Estate Salesperson Whose Compensation Is Commission-Only