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Scenario 2-5 Thomas Motors Is an Independent Auto Dealer in a Metropolitan

Question 57

Multiple Choice

Scenario 2-5
Thomas Motors is an independent auto dealer in a metropolitan market dominated by a number of national franchise dealerships including General Motors, Ford, Daimler/Chrysler, and foreign imports Honda, Toyota and more. In order to maintain their share of market, Thomas must do significant advertising in a number of different media. They carry several different popular makes of automobiles, both foreign and domestic, and maintain a high level of inventory on their lot at all times.
-(Scenario 2-5) Thomas' management has budgeted $1,000,000 for television advertising for the coming year. How much can their advertising agency expect to earn from this commitment using a traditional commission system compensation plan?


A) $10,000
B) $15,000
C) $100,000
D) $150,000

Correct Answer:

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