Question

Last year, you set aside an advertising budget of $5,000 to place ads in different newspapers, social media platforms, and the local radio station, The
local radio station typically costs $2,500 for a three-month advertising season. But as a first-time advertiser, the station offers you a deal and provides you
with a $500 discount
calculate the budget variance and identify wether its a budget surplus or a budget deficit.

Answer 1

Based on the discount offered and the cost of advertising, your budget variance is $500 and it is a surplus.

How much do you spend on advertising?

You need to advertise for 6 months which means that you will pay for two three-month advertising seasons.

The first season will cost $2,000 because of the discount and the second season will cost $2,500. Total cost is:

= 2,000 + 2,500

= $4,500

What is the Budget surplus?

= Budget - Amount spent

= 5,000 - 4,500

= $500

Find out more on budget variance at brainly.com/question/25625268.