An agency has designed a full-page magazine ad for hot tubs for a cost of $600.The job required the services of a photographer to produce an illustration of people enjoying a soak in a hot tub.If the agency uses the traditional markup,what is the advertising agency's media commission?

Question

Quizplus · Accepted Answer

To get the traditional agency commission of 15 percent, the agency would markup the $600 bill by 17.65 percent, which amounts to $106. Now, the ad agency adds this amount to the original bill of $600 and sends it to the magazine. The total amount is now $706. The media commission for the ad agency is 15% of the new total amount, which is $106.

An Agency Has Designed a Full-Page Magazine Ad for Hot