You Handle the Payroll at a Small Company Whose President

question 4

Essay

You handle the payroll at a small company whose president boasts that the average salary at his company is $54,000.What is the statistical reason for this distorted view of the company's average pay? Then,using the salaries listed below for everyone that works at this company determine the mean,median,mode,and range of salaries for this small company.
Salaries: $200,000 (president's salary); $100,000 (vice-president's salary)
Other eight employees earn $30,000 each.

---

Definitions:

Segmented Income Statement

An income statement that breaks down revenues, cost of sales, and expenses by segments such as product lines, departments, or geographic regions.

Contribution Format

A method of income statement presentation that separates fixed and variable costs, making it easier to see the contribution margin.

Segmented Income Statement

An income statement that shows the financial results of different segments of a company separately.

Contribution Format

A financial reporting format that highlights the variable costs associated with a product or service, used to calculate contribution margin.