Loading and Commission

[MathClown007]

The gross cost of a newspaper ad is $5600. The advertiser requests a particular page that incurs a loading of 20%. If the agency negotiates an 8% media commission, what dollar amount will the supplier charge the agency?

 

[stapel]

The gross cost of a newspaper ad is $5600. The advertiser requests a particular page that incurs a loading of 20%. If the agency negotiates an 8% media commission, what dollar amount will the supplier charge the agency?

What does it mean to "incur a loading of (some percentage)"? On what is the agency's fee based? Who pays this?

(We can help you with the math, but you'll need to explain the industry-specific terms.)

When you reply, please include a clear listing of your thoughts and efforts so far. Thank you!