Suppose a firm manager has a base salary of $85,000 and earns 0.5 percent of all sales.Determine the manager's income if revenues are $2,000,000 and profits are $500,000.
A) $50,000
B) $87,500
C) $95,000
D) $170,000

Question

Quizplus · Accepted Answer

The manager's income consists of their base salary plus a percentage of all sales. The question only provides information on revenues, not profits, so we cannot factor that into the calculation. Therefore, the manager's income would be $85,000 (base salary) + 0.5% of $2,000,000 (sales) = $95,000. So, the correct choice is C.

Suppose a Firm Manager Has a Base Salary of $85,000