Suppose compensation is given by W = 450,000 + 220 ? + 15S, where W = total compensation of the CEO, ? = 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. 43.4 percent
B. 12.6 percent
C. 7.9 percent
D. 6.0 percent
Answer: B
You might also like to view...
The European Central Bank has ensured independence by appointing Executive Board members for:
A. eight-year non-renewable terms. B. fourteen-year terms. C. twenty-year terms. D. life.
Grocery store coupons, mail-in rebates, senior discounts, and in-state versus out-of-state tuition fees are all examples of:
a. government intervention. b. price neutrality. c. arbitrage pricing. d. price discrimination. e. illegal business practice.
An increase in fixed cost will, in the short run, alter the industry's output of
a. both a monopolist and a competitive industry. b. only a monopolist. c. only a competitive industry. d. neither a monopolist nor a competitive industry.
If the graph shown is displaying a competitive labor market:
A. Q* would represent the most employment possible for the market. B. D would represent the workers' demand for jobs at each wage. C. P* would represent the equilibrium wage. D. S would represent the firm's supply of jobs at each wage.