23. Make and solve a problem that requires the rate per cent of loss to be found.

24. Make and solve a problem that requires the cost to be found.

25. Make and solve a problem that requires the rate per cent of gain to be found.

26. Make and solve a problem that requires the selling price to be found.

COMMISSION

266. One who transacts business for another is an agent.

Agents are known by various names according to the kind of business transacted by them. Those who buy and sell merchandise on commission are called commission merchants or commission brokers; those who buy and sell stocks and bonds are called stock brokers; those who collect money are called collectors. Can you mention other kinds of agents?

267. The percentage allowed an agent as compensation for transacting business is called commission.

268. The commission of a broker is called brokerage.

269. Commission for buying goods is computed as a certain per cent of the cost of the goods; commission for selling goods is computed as a certain per cent of the selling price of the goods; commission generally is computed as a certain per cent of the money handled, or the value of the property with which the agent deals. The principal exception to this rule is brokerage for buying and selling stocks and bonds, which will be treated later.

270. A quantity of goods delivered to a commission merchant to be sold is called a consignment.

271. The party sending a consignment of goods to be sold by a commission merchant is the consignor.

272. The party to whom a consignment of goods is delivered for sale is the consignee.

273. The sum received from the sale of goods, after all expenses, such as commission, freight, and cartage, have been deducted, is called the net proceeds of the sale.

274. The party who employs an agent is called the principal. 275. Oral

1. A college student sold 200 books at $3 apiece during a summer vacation. What was his commission, at 40%?

2. A real estate agent received $80 for selling a house. His commission was 2%. What was the selling price of the house?

Which term of relation is to be found?

3. A lawyer received $30 for collecting $200. the rate of his commission?

What was

Which term of relation is to be found?

4. A commission merchant sold 1000 pounds of butter at 25 cents a pound, retained his commission of 10%, and sent the remainder to his principal.

a. What did his commission amount to?

b. How much did the principal receive?

5. An auctioneer sold, on 10% commission, household goods to the amount of $700.

sale?

What were the net proceeds of the

6. When an agent sells goods on 20% commission, what per cent of the selling price of the goods does the principal receive?

7. A manufacturing company sold its entire product through a commission merchant who received 10%. What was the selling price of a consignment for which the company received $900?

8. The net proceeds of a sale were $85. The commission was $15. What was the rate of commission?

9. What rate of commission is received, when a sale amounting to $100 yields $80 net proceeds?

10. A commission merchant receives 2 cents a dozen as his compensation for selling eggs.

a. That is equivalent to what per cent commission when eggs sell at 20 cents a dozen?

b. When they sell at 16 cents a dozen?

c. When they sell at 24 cents a dozen?

11. A collector for a daily newspaper received 5% commisHow much must he collect daily in order to earn $4 a

sion. day?

12. A collector working on 10% commission must collect how many dollars in order that his principal may receive $180?

13. An agent collected a sum of money, took out his commission of 20%, and paid the remainder, which was $40, to his employer. What was his commission?

276. Written

1. What is an agent's commission at 41% for selling 850 barrels of flour at $5.25 a barrel?

2. A commission merchant sold a consignment of goods for $2470, took out his commission of 8%, paid $28 freight and $5 storage, and sent the remainder to the consignor. How much did the consignor receive?

3. An agent receives 6% commission for buying wool at 21 cents a pound.

a. What is his commission for buying 50 tons of wool?

b. How many pounds must he buy in order to earn $1690.50 in commissions?

4. An agent's commission for selling 479 books at $3.50 apiece was $670.60. What was the rate of his commission?

5. A lawyer procured a loan for an improvement company, charging 1% commission. His commission was $4500. What was the amount of the loan?

6. A dealer in typewriters in a Western city sold typewriters manufactured in New York State. His commission was 35 %, out of which he paid freight charges at the rate of $4.50 per hundredweight.

a. If the weight of the typewriters averaged 50 pounds apiece when packed for shipment, and they were sold at an average price of $103 each, how much did the dealer clear on a shipment of 100 typewriters?

b. This dealer employed an agent, paying him $10 a week, and 20% commission. The agent sold two typewriters in one week. What did he receive for his week's work?

c. How much did the dealer gain from this agent's work?

7. An agent took grocery orders on a commission of 121%. He sold goods amounting to $1352, took out his commission, paid freight charges amounting to $30.75, and sent the remainder of his collections to his principal.

a. What were the net proceeds of the sale?

b. How many dollars' worth of goods must the agent sell to earn $568 in commissions?

8. a. An agent who receives $15 per week and 51% commission, must sell how many dollars' worth of goods in a year to obtain an income of $1566.50 ?

b. If he receives no compensation but his commission, what must be the amount of sales to yield him the same income as in Question a?

9. An agent who had charge of a business block received as his commission 2% of the first year's rent and 1% of all rents for succeeding years.

a. What was the amount of his commission on five-year leases of two stores, one at $250 per month and the other at $300 per month?

b. What was his commission on a three-year lease of an office 16 ft. by 20 ft., the annual rent being at the rate of $.80 per square foot of floor?

c. His commission on a ten-year lease of a suite of banking rooms was $253. What was the annual rent?

10. A real estate agent sold my property in Boston, took out his commission of 2%, and remitted to me the remainder, which was $5880. What was the amount of his commission?

11. A commission merchant received a consignment of goods on which he paid $82.50 freight charges, $15.60 for cartage, and $6 for storage. He sold the goods, deducted his commission of 8%, and his disbursements for freight, cartage, and storage, and then had $7255.90 net proceeds of the sale, which he remitted to his principal. For how much did he sell the goods?

12. A commission merchant sold a consignment of goods, paid freight charges and drayage to the amount of $39.85, retained his commission of 8%, and sent the remainder, which was $1685.15, to his principal.