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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?

Guest Dec 17, 2017
 #2
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+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????

Guest Dec 18, 2017
edited by Guest  Dec 18, 2017
 #3
avatar+1169 
+3

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

GingerAle  Dec 18, 2017
 #4
avatar+93346 
+2

 

Come on Ginger, there is no need to be mean   angry

 

I can see your answer is correct but our guest's error is easily made.  

Melody  Dec 18, 2017

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