COMMISSION 214. An agent is a person who transacts business for another called the principal. An agent that receives into his possession the property of the principal, and transacts in his own name the business relating to such property, is called a commission merchant. An agent that does business in the name of his principal, and without receiving the property of the principal into his possession, is called a broker. 215. Commission or brokerage is the sum charged by an agent for transacting business for a principal, and is usually a certain per cent of the amount involved in the transaction. 216. When a sale is made, commission is reckoned on the amount of the sales, and when a purchase is made, on the amount of the purchase. 217. A consignment is the goods sent by one person to another for sale. The party who sends the goods is the consignor, and the party who receives them is the consignee. The net proceeds of a consignment is the sum that is left after all expenses are paid. Illustrative Examples 1. An agent sold fertilizer to the amount of $3450. He paid storage and other expenses amounting to $ 35; what were the net proceeds, if he deducted a commission of 1.5% ? The answer may 17250 3450 51.750 35 $86.75 Explanation: $3450 = amount of sales. .015 x $3450, or $ 51.75 = commission. .. $51.75 + $35, or $ 86.75 = total charges, and $3450 – $86.75, or $ 3363.25 = net proceeds. $3450 - $86.75 = 2. My agent purchased for me 500 bu. of corn at 75 per bushel, prepaid freight amounting to $25, and charged me a commission of 2%; find the entire cost of the corn. 23. An agent was paid 12% commission on his sales and $50 a month. How much did he earn during a certain month in which his sales amounted to $1280 ? 24. A commission merchant sold 650 lb. of dressed turkey at $0.18 a pound. He charged a commission of 5%, and his other expenses amounted to $2.50. Find the net proceeds of the sale. 25. Find the entire cost of 1020 bu. of wheat at $0.92 a bushel, if the purchasing agent charged a commission of 2% and the freight charges amounted to $48.50. 26. A commission merchant sold 650 doz. eggs at $0.32 a dozen. After deducting a commission of 4% and other expenses amounting to $1.75, how much should he remit to his principal? 27. How much money should I send my agent to pay for 50 T. of bran at $22 a ton, and pay his commission amounting to 21 % ? 28. An agent sold a consignment of 8 wagons at $85 each. He charged a commission of 15 %, and paid delivery charges amounting to $12.50. Find the net proceeds. $40 an acre. 29. A real estate agent sold a tract of 216 A. of land at He charged the owner a commission of 2 %, and the transfer cost $ 35.50 additional; how much should be paid to the owner? 30. My agent purchased oats for me at $0.50 a bushel, charging a commission of 2%; how many bushels did he buy if the total cost was $ 510 ? SUGGESTION. Find the commission on the cost of 1 bu. 31. An administrator is usually paid a commission of 5% on all personal property sold, and 21% on all real estate; what commission should be paid an administrator of an estate the personal property of which sold for $ 625, and the real estate for $ 3020 ? Find the commission charged on a bill of goods the entire cost of which was $220, if the rate of commission was 10 %. SUGGESTION. 10% of the cost of goods = commission. .. 110% of the cost of the goods = the entire cost, or $220. 33. An agent received $2000 with which to buy flour at $4.50 a barrel. If he charged a commission of 5%, how many barrels did he buy and what was the surplus? 34. A lawyer collected for his client 80% of a debt of $650; if the lawyer charged a commission of 25 %, how much should he pay over to his client? 35. A dealer in farm implements sent his principal $578 as the net proceeds of a sale after he had deducted his commission of $102. What rate of commission was charged? |