Question
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
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. I believe there is a problem with the amount of $5,382,000 (the commission for the 3d quarter) and the amount $6,957,000 is incorrect. There is a table below: Please tell me how the 15% commission was calculated in the table and where is the mistake in the calculations. The amount of $6,957,000 is incorrect because the total amount is $23,454,000. The total amount is correct. Thank you!!!
| Quarter | Markt & Advert. | Booking Advert. | 15% Commission | Total |
| 1st | $625,000 | $500,000 | $1,458,000 | $2,583,000 |
| 2d | $625,000 | $500,000 | 3,645,000 | 4,777,000 |
| 3d | $625,000 | $500,000 | 5,832,000 | 6,957,000 |
| 4th | $625,000 | $500,000 | 8,019,000 | 9,144,000 |
|
| 2,500,000 | 2,000,000 | 18,954,000 | 23,454,000 |
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