Business, 12.02.2020 05:02 bryanmcmillianjr

Under the cost-plus agreement that AdCreate has with its client Still Water Furnishings, Jacob Stein noticed that AdCreate incurred costs of $625,000 for a print and direct mail campaign during 2016. Under the cost-plus terms, AdCreate used a markup of 13% for services provided to Still Water Furnishings. Based on this information, which of the following is true?

I. The client (Still Water Furnishings) paid AdCreate $706,250 in 2016.
II. AdCreate's income from the Still Water Furnishings account in 2016 was $81,250.
III. The client (Still Water Furnishings) paid AdCreate $700,000 in 2016.

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Under the cost-plus agreement that AdCreate has with its client Still Water Furnishings, Jacob Stein...

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