Magnolia Real Estate State Exam Practice Test 2025 – The All-in-One Guide to Master Your Real Estate License!

To determine the earnings of a sales associate from a commission percentage, we need to first calculate the total commission from the sale and then what percentage of that commission the sales associate earns.

In this scenario, the property being sold is 20 acres at a price of $5,000 per acre. The total sale price would be:

Total Sale Price = 20 acres × $5,000/acre = $100,000.

Next, we find the total commission for the sale, which is 6% of the total sale price:

Total Commission = 6% of $100,000 = 0.06 × $100,000 = $6,000.

Next, the final step is to determine the commission percentage that the sales associate earns from this total commission. If the sales associate earns 70% of the total commission, we can calculate their earnings as follows:

Sales Associate Earnings = 70% of $6,000 = 0.70 × $6,000 = $4,200.

This means that the percentage the sales associate earns, if it's specified to be 70%, connects directly to their share of the total commission. Therefore, stating that the sales associate earns 70% is accurate given the calculations based