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

question 92

Multiple Choice

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

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Definitions:

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.

Purchasing Power

The economic value of a currency depicted by the number of goods or services obtainable by a single monetary unit.

US$ Per C$

The exchange rate that defines how much one can buy in US dollars (US$) with one Canadian dollar (C$).