Solved: Total earnings tied to profits of the firm, Microeconomics

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Total earnings tied to profits of the firm

Problem: Suppose compensation is given by W = 450,000 + 220p + 15S, where W = total compensation of the CEO, p = 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%

Please show calculations.

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Solution Preview :

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Microeconomics: Total earnings tied to profits of the firm

Reference No:- TGS01741301

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Reference No:- TGS01741301

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