Linda Johnson, a broker, sold a home for $85,000. The home had been listed with another real estate firm for a 7% commission. The commission split between Johnson's principal broker and the other principal broker was 50/50. The commission split between Johnson and her principal broker was 65% to the broker, 35% to the principal broker. What was Johnson's commission from the sale of the home

Linda's share was $ 1933.75

Step-by-step explanation:

We first need to calculate the comission that was paid to the other real state firm wich is 7% of the sales price, so we can use the following equation:

Comission = 85000 * (7/100) = 85000*0.07 = 5950 $

Since this comission was split in half between Johnson's broker and the other broker we have 5950/2 = 2975 for each of them. From that value 65% should stay with the broker wich is Linda in this case so:

Linda's share = 2975*(65/100) = 2975*(0.65) = 1933.75 $.

Given Information:

Sale Amount = $85,000

Commission rate = 7%

Linda Johnson commission rate = 65% of 50% of commission amount

Required Information:

Linda Johnson share in the sale = ?

Linda Johnson share in the sale = $1933.75

Step-by-step explanation:

Linda Johnson share in the sale is

Linda's share = 65% of 50% of commission amount

Where commission amount is

commission amount = 7% of sale amount

commission amount = 0.07*85,000

commission amount = $5,950

Linda's share = 0.65*0.50*5,950

Linda's share = $1933.75

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