This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal.
A)fluctuating first-dollar-of-profits
B)differed first-dollar-of-profits
C)graduated first-dollar-of-profits
D)fixed first-dollar-of-profits

Question

Quizplus · Accepted Answer

The formula described is using a specific percentage of annual profits, indicating a fixed first-dollar-of-profits approach, contingent upon meeting a specific profit goal.

This Formula for Determining the Amount Available for Profit Sharing