A broker earns 5% commission on a $600,000 sale. If the listing broker gets 60%, how much do they receive?
Question & Answer
Review the question and all answer choices
$12,000
Option A ($12,000) is incorrect because it mistakenly calculates 2% of the sale price (5% total commission × 60% split = 3%, but this option shows 2%). This error represents a common mistake of multiplying the percentages together before applying to the sale price.
$18,000
$30,000
Option C ($30,000) is incorrect because it represents the total commission amount without applying the listing broker's percentage split. This error represents stopping at the first calculation step and failing to complete the second required step.
$15,000
Option D ($15,000) is incorrect because it represents 2.5% of the sale price, which doesn't align with either the total commission rate or the listing broker's share. This error might result from misreading the commission percentage or split percentage.
Why is this correct?
Option B ($18,000) is correct because it properly calculates the total commission ($30,000) and then applies the listing broker's 60% share to this amount. This demonstrates understanding of sequential percentage calculations in commission splits.
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