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

First, we need to calculate Lawrin's commission for the two houses she sold:

Commission for house 1 = 3% of $385,420 = $11,562.60
Commission for house 2 = 3% of $385,420 = $11,562.60
Total commission = $11,562.60 + $11,562.60 = $23,125.20

Next, we need to calculate Lawrin's 1.5% commission:

1.5% of $385,420 = $5,781.30

Finally, we add the two commissions together to get Lawrin's gross pay for the month of July:

$23,125.20 + $5,781.30 = $28,906.50

However, we need to remember that the broker retains the rest, so Lawrin's actual gross pay is:

$28,906.50 - broker's commission = $5,781.30

Therefore, the best choice is B.

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