Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I dont undestand how to put this on a spreadsheet for excel. 10. A stockbroker calls on potential clients from referrals. For each call, there

I dont undestand how to put this on a spreadsheet for excel.

10. 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 firms 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

Commission $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 brokers commission based on the number of calls per month made. What is the expected commission based on making 600 calls?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions And Markets

Authors: Jeff Madura

10th International Edition

0538482176, 9780538482172

More Books

Students also viewed these Finance questions

Question

How did the plague contribute to the Renaissance?

Answered: 1 week ago