Salesperson A earns on a sale of $129,985 with an 8 percent commission. Brokers B (60%) and D (40%) split the commission. If broker B keeps 30 percent of what she received and pays the remainder to Salesperson A, how much does Salesperson A earn on this sale?

Salesperson A earns on a sale of $129,985 with an 8 percent commission. Brokers B (60%) and D (40%) split the commission. If broker B keeps 30 percent of what she received and pays the remainder to Salesperson A, how much does Salesperson A earn on this sale?

• A. $3,575
• B. $4,000
• C. $4,367.50
• D. $10,080

Answer: (C)

The amount earned from the sale is split first between two brokers, and then one broker passes a portion of her share to the salesperson. Total commission = 8% of 129,985 = 10,398.80. Broker B gets 60% of the total: 10,398.80 × 0.60 = 6,239.28. Broker D gets 40%: 10,398.80 × 0.40 = 4,159.52 (not needed for the final payout). Broker B keeps 30% of what she received and passes the rest to Salesperson A: 30% of 6,239.28 = 1,871.78 kept by B. The remainder to Salesperson A = 6,239.28 − 1,871.78 = 4,367.50. Salesperson A earns 4,367.50 on this sale.

The amount earned from the sale is split first between two brokers, and then one broker passes a portion of her share to the salesperson.

Total commission = 8% of 129,985 = 10,398.80.

Broker B gets 60% of the total: 10,398.80 × 0.60 = 6,239.28.

Broker D gets 40%: 10,398.80 × 0.40 = 4,159.52 (not needed for the final payout).

Broker B keeps 30% of what she received and passes the rest to Salesperson A:

30% of 6,239.28 = 1,871.78 kept by B.

The remainder to Salesperson A = 6,239.28 − 1,871.78 = 4,367.50.

Salesperson A earns 4,367.50 on this sale.