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	Answer 1 Question 1

Average mortgage size per year		$Answer 2 Question 1

Average conversion rate from leads		20%
Expected mortgage size per year based on average conversion rate		$Answer 3 Question 1

Expected commission earned	$ 0	$Answer 4 Question 1

Total annual income including commission	$ 64,000.00	$Answer 5 Question 1

Income Variance (Note: Ensure you include the decimal point in your percentage calculations, -  Up to 2 decimal places are accepted.)		Answer 6 Question 1