A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
Question & Answer
Review the question and all answer choices
$13,500
Option A ($13,500) is incorrect because it represents 3% of the sale price ($450,000 × 3%), which would be the case if the listing broker received half of a 6% commission, not 60%.
$16,200
$27,000
Option C ($27,000) is incorrect because it represents the total commission amount (6% of $450,000), not the listing broker's share of 60%.
$10,800
Option D ($10,800) is incorrect because it represents 60% of half the total commission, or 3% of the sale price, which would be the case if the commission was split 50/50 between brokers.
Why is this correct?
Option B ($16,200) is correct because it accurately calculates the listing broker's share. First, the total commission is $27,000 ($450,000 × 6%), and then the listing broker receives 60% of that amount ($27,000 × 60% = $16,200). This follows the standard two-step calculation process for commission splits.
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