Case 9.

GOOD MUSIC BROADCASTING CORPORATION

Ebb Tide

Engineer Frederick Panganiban was reading the

advertising sales report handed to him by his assistant
The report contains information consolidated from the
ten radio stations owned and operated by Good Music
Broadcasting Corporation (GMBC). These stations an
located in the various parts of the country.
GMBC headquarters and sales office are located it
Makati. GMBC derives income from advertisements lodged
by companies like San Miguel Corporation, Ayala Life, and
others. The sales office receives the cassette tapes and
written text containing the advertising messages of the
client companies.
The tapes are meant to be played at regular interval(
in all of the ten radio stations operated by GMBC. The
written text is an alternate advertising form read by the
radio announcers at regular intervals. An advertising
message does not exceed one minute. The advertisers an
billed depending on the frequency of exposure of their
messages.
Each station is managed by a station manager wh(
reports directly to Engineer Panganiban, the genera
manager. The stations are allowed to accept local adver
tisements subject to availability of slots after accommo
dating the national advertisers.
A certain portion of the advertising income is credited
to the account of the individual stations depending on the
assignments sent to them by the GMBC headquarters
The total advertising income of a station consists of the
credited account from the head office plus whatever income
from local advertisers is derived.
Engineer Panganiban is now reviewing the consoli
dated sales report. He wants some improvement is

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