Hello, I need help with calculating Marketing, Sales and Commissions expense for each month of 3d quarter. Here is the scenario. The Company ABC has contracted with a media company to handle all marketing materials and advertising. Their budget for the first year is $2,500,000. The company also has contracted with an advertisement sales company that is responsible for booking the advertisements. Their budget for the first year is $2,000,000. The Company ABC has allowed for a 15% commission to be paid to the advertiser in the form of a discount or in some cases paid to their ad agency of record. I need to calculate the Marketing, Sales and Commissions expense for each month for the 3d quarter. I calculated this by $6,957,000/3 months=2,319,000 per month which is incorrect. The amount of $6,957,000 is incorrect. There is a table below with correct numbers other than $6,957,000. Please tell me how the 15% commission was calculated in the table. For example, how the amount of $1,458,000 was calculated? The amount of $6,957,000 is incorrect because the total amount is $23,454,000. The total amount of $23,454,000 is correct. Thank you!!!
|Quarter||Markt & Advert.||Booking Advert.||15% Commission||Total|