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# Suppose that a real estate agency makes its money by taking a

percentage commission of total sales. It also has fixed costs of \$15,257 per month associated with rent, staff salaries, utilities, and supplies. In the month of August, total sales were \$832,000 and net income (after paying fixed costs) was \$9703. Because each dollar increase in sales results in the same increase (a certain percentage of that dollar) in net income, net income is a linear function of total sales. Find a linear formula that gives net income in terms of total sales. What percentage commission on sales is this company charging?

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2. (14 points) Suppose that a real estate agency makes its money by taking a percentage commission
of total sales. It also has fixed costs of \$15,257 per month associated with rent, staff salaries,
utilities, and supplies. In the month of August, total sales were \$832,000 and net income (after
paying fixed costs) was \$9703. Because each dollar increase in sales results in the same increase (a
certain percentage of that dollar) in net income, net income is a linear function of total sales. Find
a linear formula that gives net income in terms of total sales. What percentage commission on
sales is this company charging?
=

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