What type of bonus determination formula are you using by declaring that 10 percent of pre-tax profit goes into the profit-sharing bonus pool at the end of the year?

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The bonus determination formula being used is a fixed percentage formula, where a percentage (in this case, 10%) of pre-tax profit is allocated to the bonus pool. This is different from a discretionary formula, where the bonus pool is determined at the discretion of management based on various factors, and a fixed threshold or step formula, where the bonus pool is determined based on reaching certain financial or performance benchmarks.

What Type of Bonus Determination Formula Are You Using by Declaring