A Pennsylvania broker charges 6% commission on sales up to $200,000 and 3% on the amount above $200,000. A property sells for $350,000. What is the total commission?

Explanation

Commission on first $200,000 = $200,000 × 6% = $12,000. Commission on amount above $200,000 = ($350,000 − $200,000) × 3% = $150,000 × 3% = $4,500. Total commission = $12,000 + $4,500 = $16,500. Graduated commission structures are sometimes used in Pennsylvania to make listing services more affordable for higher-priced properties while maintaining revenue on standard sales.