Which budget set is correct for the given network shares (Seven 37.5%, Nine 45%, STV 17.5% with a gross cost of 1,350,000)?

Which budget set is correct for the given network shares (Seven 37.5%, Nine 45%, STV 17.5% with a gross cost of 1,350,000)?

• A. Seven - $506,250; Nine - $607,500; STV - $236,250
• B. Seven - $455,625; Nine - $546,750; STV - $212,625
• C. Seven - $607,500; Nine - $506,250; STV - $236,250
• D. STV - $506,250; Nine - $607,500; Seven - $236,250

Answer: (A)

Allocating the budget uses each partner’s percentage of the total cost. The shares are Seven 37.5%, Nine 45%, STV 17.5%, which add to 100%. Multiply each share by the gross cost: Seven = 0.375 × 1,350,000 = 506,250; Nine = 0.45 × 1,350,000 = 607,500; STV = 0.175 × 1,350,000 = 236,250. These sum to 1,350,000, matching the given gross cost. The other options don’t fit because they assign incorrect percentages to the broadcasters. For example, 455,625 for Seven is 33.75% of the total, not 37.5%; other options either swap the shares or place the 37.5% on STV, which contradicts the given shares.

Allocating the budget uses each partner’s percentage of the total cost. The shares are Seven 37.5%, Nine 45%, STV 17.5%, which add to 100%. Multiply each share by the gross cost: Seven = 0.375 × 1,350,000 = 506,250; Nine = 0.45 × 1,350,000 = 607,500; STV = 0.175 × 1,350,000 = 236,250. These sum to 1,350,000, matching the given gross cost.

The other options don’t fit because they assign incorrect percentages to the broadcasters. For example, 455,625 for Seven is 33.75% of the total, not 37.5%; other options either swap the shares or place the 37.5% on STV, which contradicts the given shares.