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Suppose Compensation Is Given by W = 100,000 + 157

Question 12

Multiple Choice

Suppose compensation is given by W = 100,000 + 157 π + 12S, where W = total compensation of the CEO, π = company profits (in millions) = $340, and S = sales (in millions) = $700. What percentage of the CEO's total earnings is tied to sales of the firm?


A) 5.2 percent
B) 13.5 percent
C) 19.6 percent
D) 33.0 percent

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