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AdCreate negotiated a rate of 12.5% for a commission system payment with Worry Free Financial for a campaign in 2016. AdCreate arranged for the airing of three ads, during Newshour on CNN, in the first week of the launch campaign. AdCreate's income for these three ads in the first week was $49,375. Based on this information, which of the following is true?
I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.
II. AdCreate paid CNN $425,625 for the three ads.
III. AdCreate paid CNN $345,625 for the three ads.
a. Ill only
b. I and ll
c. II only
d. I only

Respuesta :

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Answer:

a.) 111 only

Explanation:

Let amount paid = x

12.5% of x = $49375

0.125x = 49375

x = 49375 / 0.125

x = 395,000

The amount worry free financial paid Adcreate is $395,000 ;

Adcreate would subtract their 12.5% ($49,375) and pay CNN;

Amount adcreate paid CNN is :

$395,000 - $49,375 = $345,625

Hence, statements; I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.

II. AdCreate paid CNN $425,625 for the three ads.

are untrue

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