Question 29404: A real estate agent agrees to sell a large apartment complex according to the following commission schedule: $23,000 plus 25% of the selling price in excess of $900,000. Assuming that the complex will sell at some price between $900,000 and $1,100,000, inclusive, over what range does the agent's commission vary? How does the commission vary as a percent of selling price?
Answer by josmiceli(19441)   (Show Source):
You can put this solution on YOUR website! let commission = c
let selling price = p
23,000 + .25p = c
p varies between 900K and 1,100K
23,000 + .25(900K) = c
248K = c
23,000 + .25(1,100K) = c
298K = c
so the agents commission can vary from $248K to $298K
How does the commission vary as a percent of selling price?
100 x c/p
100 x (23K + .25p) / p
100 x (23K/p + .25) = commission as percent of selling price
try p = 1,100,000
100 x (23K/1100K + .25) =
100 x (.0209 + .25) = 27.1%
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