Jeff Sellers bought 200 shares of radio shack stock at $22.35. eight months later,he sold the stock at $31.76.assuming a 2% commission charge, what is the bottom line for Jeff?
200 * 22.35 = 4,470
200 * 31.76 * 0.98 = 6,224.96
Subtract his purchase price from his sales price.
an office worker earns $3,450 monthly. the worker ios kmarried and claims two exemptions. find the FIT to be withheld from his monthly check using the percentage method ans using the wage bracket method.
ms. sue, is it $ 1,754.96? Thanks
It's not clear from your question whether the commission is charged once or twice (at purchase and at sale). Assuming the latter (which is customary)...
Cost basis: (22.35 * 200) * 1.02 = $4,559.40
Sale proceeds: (31.76 * 200) * (1 - 0.02) = $6,224.96
Net profit: 6,224.96 - 4,559.40 = $1,665.56
8 month return: 1665.56 / 4559.40 = 36.53%
To calculate the bottom line for Jeff after considering the commission charge, we need to determine the cost of buying the stock, the revenue from selling the stock, and the commission amount deducted from the revenue. Here's how you can calculate it step by step:
1. Calculate the cost of buying the stock:
Cost = Number of shares * Purchase price per share
Cost = 200 shares * $22.35 per share
Cost = $4,470
2. Calculate the revenue from selling the stock:
Revenue = Number of shares * Selling price per share
Revenue = 200 shares * $31.76 per share
Revenue = $6,352
3. Calculate the commission charge:
Commission = 2% of the revenue
Commission = 0.02 * $6,352
Commission = $127.04
4. Calculate the bottom line for Jeff:
Bottom line = Revenue - Commission - Cost
Bottom line = $6,352 - $127.04 - $4,470
Bottom line = $1,754.96
Therefore, the bottom line for Jeff after the commission charge is $1,754.96.