Question

I'm having trouble explaining this concept

Answer 1

Could you try rewording this a little bit? Are you saying the total budget is $1,000, and 10% of that can be commission? I'm not really clear what you're asking or attempting to illustrate here.

Answer 2

It depends on the situation. I work in insurance, and a commission (paid to the agent) is typically calculated as a % of the total price paid by the purchaser. So, if the policy premium is $1,000 then the commission would indeed be $100. The price net of commission would be 1000(1-10%) = 900.

Answer 3

Total budget (including commission) equals $1000. Known commission rate is 10%. We are solving for the net before commission, is this correct?