AdCreate is a full$-$service advertising agency with several high$-$profile marketing firms as clients. Given their vast client list and the varied services they provide to different clients, they are compensated differently by different clients. Jacob Stein, who recently joined AdCreate in the finance department, was asked to review the various compensation models being used by some of AdCreate's biggest clients.

With Anchor Motors, AdCreate has an incentive$-$based agreement. Under the terms of this agreement, AdCreate gets to keep the full $15\%$ commission from media if Anchor Motor's sales for the period of advertising show an increase of $5\%$ or greater compared to sales in the same period the previous year. For sales increase between $3\%$ and $5\%,$ AdCreate gets to keep $13\%$ out of the $15\%$ media commission. Finally, for sales increase between $1\%$ and $3\%,$ AdCreate gets to keep $10\%$ out of the $15\%$ media commission.

Question $4.$

In reviewing the agreement between AdCreate and Anchor Motors, Jacob Stein found that

sales of Anchor rose $2\mathrm{.}8\%$ compared to the previous year in the third quarter. AdCreate paid

the media $$450,000$ for Anchor Motors ads during the same period. Based on this

information, which of the following is true for the third quarter billings?

A$.$ AdCreate billed Anchor Motors $$502,941$ for the third quarter in $2022$

B$.$ AdCreate's income from the Anchor Motors account for the third quarter of $2022$

was $$79,412$

C$.$ AdCreate billed Anchor Motors $$529,412$ for the third quarter in $2022$