Certified Travel Agent Practice Test

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Gain confidence for your Certified Travel Agent Test. Prepare with multiple choice questions featuring detailed hints and explanations. Ace your exam and embark on a rewarding travel career journey!

Practice this question and more.

If you sell 1,000 travel insurance policies at $100 each and earn a 35 percent commission, what is your total commission income?

$25,000.00
$30,000.00
$35,000.00
$40,000.00

The correct answer is: $35,000.00

To determine the total commission income from selling 1,000 travel insurance policies at a rate of $100 each, first calculate the total revenue generated from the sales. This is done by multiplying the number of policies sold (1,000) by the price per policy ($100), which results in a total revenue of $100,000. Next, the commission is calculated by applying the commission rate of 35 percent to the total revenue. Converting 35 percent to a decimal gives you 0.35. Then, multiply the total revenue of $100,000 by 0.35: \[ \text{Commission Income} = 100,000 \times 0.35 = 35,000 \] Thus, the total commission income is $35,000, which confirms the correctness of the chosen answer as the total commission earned on the sale of the travel insurance policies. Understanding this calculation process is crucial for any travel agent, as it illustrates how to derive commission-based earnings from sales, a key component of financial aspects in the travel industry.