An ad agency in Atlanta,Georgia,buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The cost of the ad is $300.How much money should the agency pay the publication?

Question

Quizplus · Accepted Answer

The magazine would receive only $255 even though the travel company paid the agency $300. The $45 is the agency's media commission. Cash discounts were ignored in the question as they are in the text discussion. The typical media commission is 15 percent.

An Ad Agency in Atlanta,Georgia,buys a Quarter-Page Ad in a Golfing