+0

# help

0
1005
5

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?

Dec 17, 2017

#2
+1

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????

Dec 18, 2017
edited by Guest  Dec 18, 2017
#3
+4

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.

$$500000 + \underbrace{ (200*300)}_{\scriptsize \text{Portion tied to profits}} + (17*500) = 568500 \\ \dfrac{(200*300)}{568500} = 0.1055 =10.6 \mathbf{\%}$$

GA

Dec 18, 2017
#4
+2

Come on Ginger, there is no need to be mean 