Maths problem

Mundane Pointless Stuff I Must Share (MPSIMS)
1

Ok, for the life of me I can’t figure this out. I know that I suck at maths, but this is really bugging me, which is why I am throwing it out there for the geniuses here on the SDMB.

We sell advertising in a magazine.
A full page advert costs $4395.
We received an order from an ad agency stating that their charge to their client is $5170.60.
The agency fee is 15%.
15% of $4395 is $659.25.
If you add that to $4395 then you get $5054.25.
15% of $5170.60 is $775.59 and when you subtract that from $5170.60 you get $4395.01.

This way the agency gets 15% of the higher figure instead of the lower figure. What I can’t figure out is how they arrive at the higher figure in the first place. I know it’s probably really simple but would someone please explain it to me.

2

I guess they said, “4395 is 85% of what?” And did 4395/0.85 = 5170.6. As for how they decided that was the correct way to do things, I have no idea.

3

well, if they are maing 15% on it then the cost to them needs to be 85% of the amount they charge so you take the original amount, divide it by 85 then multiply it by 100. Im sure theres a more acceptable way to show this but im willing to bet this is the method they use in the office :stuck_out_tongue:

4

as audio bottle proved quite well, there was an easer way :stuck_out_tongue:

5

It seems to me that they deliberately solved for whatever number would allow them to take 15% off the top and still have the cost of the ad left over. In other words, they said, “Okay, we need to charge $x such that x - .15x = .85x = 4395,” and then solve for x.

6

Thank you, thank you, thank you…I knew there was an easy way to do it, I just couldn’t figure it out…much much appreciated!

7

It’s just a way for the agency to ramp up their fees while still being able to claim it’s 15%. Seems pretty nasty to me. If I were the one paying them I wouldn’t be giving them a cent more than $5054.25.

8

Unless Dead Cat’s posting is a whoosh, audiobottle has the correct solution.

Let’s suppose this is a salary question and employee X makes $4,395 after 15% tax. What is the gross pay?
Gross Pay = .15* Gross Pay + Net Pay
.85*Gross Pay = $4,395 (Net Pay)
Gross Pay = 4,395/.85
Gross Pay = 5,170.59

9

basically your agency is charging you 15% for their services - and also 15% for receiving their fee :smiley:

technically there is a double-charge in there … go raise some hell :stuck_out_tongue:

10

I wasn’t whooshing, but I may be being whooshed. I entirely agree with Al128. I also realise that audiobottle provided the OP with the answer they were looking for (it’s the OP that’s getting paid, not charged), I was just making a further comment to the effect that I thought what the agency is doing (nothing to do with the OP) is shitty business. It’s not like being taxed on salary, it’s a charge for a service. The service costs X, so the commission charged by the agency should be 0.15 * X, not X/0.85 - X. IMHO :).

11

When I used to work for a heavy equipment dealer, we marked up the price of parts 35%. That is, we divided the retailer price by .65 to get the customer price. When I questioned this, I was given the “This pays your salary” admonition.

12

Dead Cat
Sorry for saying you were whooshing. :smack:
I wasn’t being critical of your calculations, it just *seemed *(to me) your posting was indignant in a humorous kind of way.

(harumph mine).

Yes, I say you are right - that company is sleazy and they are charging more than 15%. (I’ve got to make fewer postings from work).