Suppose a Firm Manager Has a Base Salary of $175,000

question 125

Multiple Choice

Suppose a firm manager has a base salary of $175,000 and earns 0.5 percent of all profits.Determine the manager's income if revenues are $10,000,000 and profits are $5,000,000.

• A) $150,000
• B) $200,000
• C) $225,000
• D) $300,000

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Definitions:

Daily Interest Rate

A method of calculating interest where the rate is applied to the principal on a daily basis.

Miller-Orr Model

A financial model used for managing cash balances and optimizing the levels of cash holding based on specified upper and lower limits.

Cash Balance Target

A cash balance target is a strategy companies use to maintain an optimal level of cash reserves for operations and unexpected expenses, aiming to balance liquidity with profitability.