Over the past 10 years,Lincoln's profit-sharing payments have been substantial.Maria's annual salary was $40,000 last year,and she earned a profit-sharing payment of $10,000.Maria's profit-sharing award represents approximately what percentage of her annual salary?

Question

Quizplus · Accepted Answer

Maria's total compensation for last year (salary + profit-sharing payment) was $50,000. 
The profit-sharing payment represents (10,000/40,000) = 0.25 or 25% of her annual salary. 
Therefore, the answer is B, 40%.

Over the Past 10 Years,Lincoln's Profit-Sharing Payments Have Been Substantial