Suppose a firm manager has a base salary of $50,000 and earns 2.5 percent of all sales.Determine the manager's income if revenues are $20,000,000 and profits are $5,000,000.

Question

Quizplus · Accepted Answer

The manager's income is calculated by adding the base salary to 2.5% of the sales revenue. The base salary is $50,000, and 2.5% of $20,000,000 is $500,000. Therefore, the total income is $50,000 + $500,000 = $550,000.

Suppose a Firm Manager Has a Base Salary of $50,000