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Suppose Compensation Is Given by W = 450,000 + 220 π\pi

Question 92

Multiple Choice

Suppose compensation is given by W = 450,000 + 220 π\pi + 15S, where W = total compensation of the CEO, π\pi = company profits (in millions) = $300, and S = Sales (in millions) = $500.What percentage of the CEO's total earnings is tied to profits of the firm?


A) 6.0%.
B) 7.9%.
C) 12.6%.
D) 43.4%.

Correct Answer:

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