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????
+2539 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
