solution of Suppose compensation is given by W = 500,000 + 200 π + 17S, where W = total compensation of the CEO, π = 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?
How could the CEO's salary be: W = 500,000 + 200 π + 17S
=500,000 + [200*$300,000,000] + [17*$500,000,000]
=$68,500,500,000 !!!!!! Do you see the mistake????
+2234 Season’s greets, Mr. BB:
‘Tis the season to . . .
Deck the halls with boughs of BLARNEY Troll-la-Troll-la-Troll, la-Troll-Troll, Troll.
There is nothing wrong with this Yule time question. It does require advanced, grade-school mathematics skills to answer it, though.
500000+(200∗300)⏟Portion tied to profits+(17∗500)=568500(200∗300)568500=0.1055=10.6%
GA
