What formula represents the computation of commission based on sale price and commission rate?

The formula that represents the computation of commission based on sale price and commission rate is the one where you multiply the sale price by the commission rate to arrive at the commission earned. This fundamental relationship defines how much a real estate agent will earn based on the total price of the properties they sell.

When calculating commission, the sale price reflects the total transaction amount, and the commission rate, usually expressed as a percentage, determines the portion of that sale the agent will receive as compensation. Therefore, the formula—sale price times commission rate—directly yields the commission amount.

In contrast, the other options present scenarios for calculating separate variables rather than directly expressing how commission is calculated from sale price and rate. The second choice describes how to determine the commission rate when you have both commission and sale price, while the third option details how to find the sale price if you have the commission and rate, focusing on a different relationship altogether. Thus, only the first choice conveys the correct computation for determining commission based on the other two factors.