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Business Finance - Total Transaction Costs

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Steve Bolten sold his sailboat for $225,000. He paid a sales commission of 10% ($22,500) to the boat brokers, had legal fees of $500, and had additional selling costs of $1,000. What are Steve's total transaction costs? What are his transaction costs as a percentage of the gross selling price?

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Solution Summary

This solution calculates the total transaction costs and transaction costs as a percentage of the gross selling price. This is based on the fact that Steve sold his boat for $225,000, paid sales commission, had legal fees, and had additional selling costs.

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Transaction costs:

Sales commission fee ...

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