Commission and Brokerage. ORAL EXERCISES. 1. If I sell goods for $1,200, and receive 3% of the sales, how much do I get ? 2. If I get 21% for buying $1,000 worth of goods, how much do I receive ? 3. Mr. A paid an agent 6% for collecting a debt of $250 : how much did he pay the agent? 4. Mr. B received 2% for selling cotton for $8,000 : how much did he receive ? 5. Mr. C charged 3% for selling goods for $2,000 : how much did he receive? How much did he return to his employer ? DEFINITIONS. ART. 266.–An Agent or Commission Merchant is a person that transacts business for another. He is known also as a Factor, Broker, Collector, etc. ART. 267.—The Consignor or Shipper is the one that sends the merchandise to be sold. ART. 268.—The Consignment is the goods shipped. ART. 269.—The Consignee or Correspondent is the one to whom the merchandise is sent. ART. 270.—Commission is the compensation allowed the agent who sells the goods, and is a percentage of the money expended or collected. ART. 271.—Brokerage is the name generally given to the compensation of a broker. ART. 272.—The Net Proceeds of a sale or collection is the money due the consignor after the commission and all other expenses are deducted. The processes in Commission and Brokerage are based on the principles of Percentage, already explained. The terms are : 1. The Base is the sales or sum invested or amount collected 2. The Rate is the rate per cent. of commission. 3. The Percentage is the commission. 4. The Amount is the purchase price plus the commission. 5. The Difference is the net proceeds. Formulas.—Commission or Brokerage base x rate %. Rate % commission or brokerage = base. Base commission or brokerage • rate %. Base (base + commission or brokerage) = (1 + rate %). WRITTEN EXERCISES. 1. A commission merchant sold 650 barrels of flour at $5.87 a barrel: what was his commission at 23% ? 2. Mr. A sold $4,850 worth of goods at auction, and charged 35% commission and 1% for insuring payment : what were the net proceeds ? 3. A collector having a debt of $1,258 to collect compromised for 90%; he charged 31% commission : how much money did he remit to his employer ? 4. An agent sold a consignment of wheat for $4,328.60, and 1,200 barrels of apples at $2.25 per barrel : his com. mission being 24%, what sum did he remit to the consignor ? 5. An attorney's commission at 21% for collecting debts was $400 : what was the amount of his collections ? 6. I received $8,346.24 with which to buy horses, after deducting my commission of 3% : how many horses did I buy at $192 apiece ? SUGGESTION.—The sum, $8,346.24, includes the 31% commission and 100% the money to be invested : hence, it is 1031% of the money expended in the purchase of horses. 7. A correspondent bought goods at 11% commission; the goods and commission together amounted to $1,800 : what was his commission ? 8. A broker sold to a merchant funds for $4,825, at a brokerage of 45%: how much was the brokerage ? 9. A broker receives 2% commission and 21% for guaranteeing payment: how much does he receive on sales amounting to $18,250 ? 10. My agent compromised with a debtor owing me $3,828 at 75%, and his commission was 5% : how much did he receive? 11. A cotton broker in New Orleans received $12,300 with which to buy cotton, after deducting his commission of 21%: if he paid $.25 a pound, how many pounds of cotton did he buy? 12. How much wool at 40 cents a pound can be bought for $4,160, after deducting a commission of 4% ? 13. A speculator sent his broker $6,828 to invest in stocks at $60 a share, after deducting $% brokerage : how many shares were purchased ? 14. I sent my agent in Trenton, N. J., the money with which to buy $824 worth of pottery and pay a commission of 23% : how much did I send him ? 15. B, of Fort Worth, bought 800 Texas cattle at a commission of 3%; he paid $40 for keeping and $60 for transportation, which, with his commission, amounted to $296 : how much did the cattle cost apiece ? 16. Smith & Bro.'s agent in Omaha sent them $7,296.06 as the proceeds of the sale of some land, the agent retaining $167.94 : what rate of commission did he charge ? 17. A consignee charged $240 for selling goods to the amount of $9,600 : what was his rate of commission ? 18. An architect charged 1% for his plans and specifications, and 14% for superintending the erection of some buildings costing $240,000 : how much was his fee ? 19. An agent charged 13% commission and $58.60 expenses for selling my house, and sent me $11,761.40 : for how much did he sell the house ? 20. What is the total cost of 620 yards of cloth at $1.50 a yard, if I pay 21% commission for purchasing, % for draft covering cost and agent's commission, and $15.75 for freight and cartage ? 21. Sent $360 to an agent to be invested in prints at 15 cents a yard, after deducting his commission of 21%: how many yards did he purchase ? 22. Sold sugar at 21% commission, and after deducting my commission, I invested the remainder in flour at 14% commission. What did I get for the sugar, if I bought flour to the amount of $126.75 ? 23. Illustrate by an original problem the method of finding the commission, when the amount of sales and the rate % of commission are given. 24. Illustrate by an original problem the method of finding the rate of commission or brokerage, when the commission and amount of sales are given. 25. Illustrate by an original problem the method of finding the amount to be invested, when the rate % of commission and the net proceeds are given. Insurance. ART. 273.- Insurance is an agreement by one party to pay another for damage or loss. It is divided into two classes : Property Insurance and Life Insurance. ART. 274.-Property Insurance includes Fire Insurance, or indemnity against loss of property by fire; Marine Insurance, or indemnity against loss by accidents of navigation; and Live Stock Insurance, or indemnity against loss of horses, cattle, etc. ART. 275.—Life Insurance is indemnity for loss of life. ART. 276.-Accident Insurance is indemnity for sickness or accident. ART. 277.—The Underwriter is the party who writes the insurance. ART. 278.—The Policy is the written contract between the insured and the company insuring. ART. 279.—The Premium is the sum paid for insur ance. In property insurance the premium is computed at a certain rate per cent. on the value of the property insured. Life Insurance is computed at a certain sum or rate % on $100 or $1,000 insured, the rate varying with age and occupation. The processes in Insurance are based on the principles of Percentage. 1. The Base is the amount insured. |