If a sales associate's expenses average 35% of gross income, what percentage of gross income represents their required take-home income?

Enhance your real estate career and ace your exam with the Real Estate Continuing Education test. Study with interactive quizzes and detailed explanations for each question. Boost your confidence and get exam-ready today!

To determine the percentage of gross income that represents the required take-home income when a sales associate's expenses average 35% of gross income, one can utilize a straightforward approach.

First, consider the total gross income. If expenses are 35%, this means the remaining amount, which constitutes the take-home income, is calculated by subtracting the expenses from 100%. Therefore, the remaining percentage after the deduction of expenses is:

100% - 35% = 65%

This calculation indicates that 65% of the gross income is what the sales associate takes home after covering their expenses. Therefore, the percentage of gross income that represents the required take-home income aligns precisely with this calculation, affirming that 65% is the correct answer.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy