Which of the following describes the deductions from GCI used to compute Net Commission Income?

• A. 10% of GCI until $5,000 to KWAP; 4% of GCI until $2,000 to KWRI; FMLS fee (.002 x Purchase Price)
• B. 30% of GCI until $15,000 to KWAP; 6% of GCI with no cap; FMLS fee (.0012 x Purchase Price)
• C. 30% of GCI until $15,000 to KWAP; 6% of GCI until $3,000 to KWRI; FMLS fee (.0012 x Purchase Price)
• D. 30% of GCI until $15,000 to KWAP; 6% of GCI until $3,000 to KWRI; No FMLS fee

Answer: (C)

Net Commission Income is what’s left after taking three set deductions from GCI: a portion goes to KWAP, a portion to KWRI, and a separate FMLS fee is charged. The correct pattern uses 30% of GCI for KWAP but this is capped at 15,000, and 6% of GCI for KWRI but capped at 3,000. In addition, there is a FMLS fee that is calculated per transaction as 0.0012 times the purchase price. This combination is what determines Net Commission Income.

So, Net Commission Income = GCI minus min(0.30 × GCI, 15,000) minus min(0.06 × GCI, 3,000) minus 0.0012 × PurchasePrice.

Example: if GCI is 60,000 and Purchase Price is 400,000, KWAP deduction is 15,000 (cap reached), KWRI deduction is 3,000 (cap reached), FMLS fee is 480, so Net Commission Income would be 60,000 − 15,000 − 3,000 − 480 = 41,520.

Other options either miss the caps, use incorrect rates, or misstate the FMLS fee, so they don’t match how deductions are actually calculated.