The formula to calculate the Auction Cost is:
\[ AUC = SP \times \frac{AF}{100} \]
Where:
Auction Cost (AUC) is the fee charged by an auction house or platform for selling an item. It is calculated by multiplying the total auction sell price by the auction fee percentage divided by 100. This cost is important for sellers to consider as it affects their net earnings from the sale.
Let's assume the following values:
Using the formula:
\[ AUC = 500 \times \frac{10}{100} = 50 \text{ dollars} \]
The Auction Cost is $50.
Let's assume the following values:
Using the formula:
\[ AUC = 1000 \times \frac{5}{100} = 50 \text{ dollars} \]
The Auction Cost is $50.
