ABSTRACT

Julie Higby, the account executive on the High Plain Bank account, says her client was questioning the hourly rate charges on the account. Julie says the client knew some of the copywriters on the account personally and a result, he knew what their salaries were and had a good idea of how many hours they worked. The CFO of Barrons Agency wasn't the first time that had encountered the question. The bit surprised had gone over in detail how bill out various people on the account with the client. Julie discusses with her how the agency bills for the services. She says last year Jim put over 2,000 hours of billable time on the account. The client goes to ask why the rate doesn't decrease if the hours increase. She felts the client would indicate the 30 percent benefits included in the overhead charge that applied to the account.