Closed Sales Volume - Total of listings and buyer sales that have closed that provides the basis for Market Center income.
Paid on Volume - The portion of Closed Sales Volume attributable to the closings where Company Dollar is paid.
Gross Commission Income (CGI) - The money generated from the commissions earned on Closed Sales Volume.
Paid on GCI - The amount of Gross Commission Income that is calculated from Paid on Volume.
Cost of Sales - The commissions paid to associates as a percentage of Paid on GCI according to their commission splits (70/30, for example). Cost of Sales sometimes includes E & O costs as well.
Company Dollar - Paid on GCI minus Cost of Sales. The money that the Market Center has left to pay expenses, make a profit, and profit share.
Grand Total Operating Expense - The sum of the expenses such as salaries, rent, copiers, utilities, etc., required to operate the Market Center before any offsetting Other Income is taken into account.
Other Income - Income from both outside the Market Center, such as from a mortgage alliance, and inside the Market Center, such as desk fees, that offset some of the Grand Total Operating Expense before Profit Share is calculated.
KW Approved Costs - Those expenses that may be subtracted from Company Dollar to calculate Market Center profit for profit-sharing purposes.
KW Profit - The Market Center profit used to calculate Profit Share, TL bonus, and tax expenses. The owner is allowed to subtract estimated federal income tax from this amount.
Profit Share - The portion of the Total Profit that is shared with KW associates and leadership who help grow the company.
KW Owner Profit - The profit left for the owner after Profit Share has been subtracted and before estimated federal income tax has been added back in.
Below-the-Line Expenses - Those expenses which may not be counted against Profit Share and must be subtracted from KW Owner Profit.
Net Profit (Loss) - The final profit or loss for the owner that the Market Center produces after all above and below-the-line expenses have been calculated. This is the money that the owner may either keep in the business as a reserve or remove from the business as profit.
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