The director of the company has asked you to confirm with Ann if she prefers to keep
Question:
The director of the company has asked you to confirm with Ann if she prefers to keep her annual salary of $64,000 and agrees to receive no commission on future applications she will settle, or if she would prefer to lower her annual base salary to $58,000 and receive a commission of .25% on her settlement volume. As a new mortgage broker of the company, Ann will be given one lead per week, averaging a potential mortgage size of $400,000 per lead application.
Before organising a meeting with Ann, complete the following salary comparison:
Please do not use commas in your answers only whole numbers e.g. 50000 NOT 50,000.00
I got answers from 3,4, 5 & 6 wrong. Can you let me know how this is suppose to be done?
|
Current |
Option with commission |
Base Annual Salary |
$64,000 |
$58,000 |
Commission |
No | Yes |
Number of leads per year |
0 |
|
| ||
Average mortgage size per year | | $ |
| | ||
Average conversion rate from leads | |
20% |
Expected mortgage size per year based on average conversion rate
| | $ |
| | ||
Expected commission earned
| $ 0 | $ |
| | ||
Total annual income including commission
| $ 64,000.00 | $ |
| | ||
Income Variance (Note: Ensure you include the decimal point in your percentage calculations, - Up to 2 decimal places are accepted.) | | |
Expert Answer:
Lets break down the steps required to complete the salary comparison for Ann Current Salary vs Option with Commission Current Annual Salary 64000 Opti... View the full answer
