A stockbroker calls on potential clients from referrals.

For each call, there is a 10% chance that the client will decide to invest with the firm. Fifty-five percent of those interested are found not to be qualified, based on the brokerage firm’s screening criteria.

The remaining are qualified. Of these, half will invest an average of $5,000, 25% will invest an average of $20,000, 15% will invest an average of

$50,000, and the remainder will invest $100,000.

The commission schedule is as follows:

Transaction Amount Commission Up to $25,000 $50  0.5% of the amount

$25,001 to $50,000 $75  0.4% of the amount

$50,001 to $100,000 $125  0.3% of the amount The broker keeps half the commission. Develop a spreadsheet to calculate the broker’s commission based on the number of calls per month made.

What is the expected commission based on making 600 calls?