Suppose compensation is given by W = 512,000 + 217π + 10.08S,where W = total compensation of the CEO,π = company profits (in millions) = $200,and S = sales (in millions) = $400.What percentage of the CEO's total earnings are tied to profits of the firm?
A) 8.2 percent
B) 10.9 percent
C) 7.8 percent
D) 5.1 percent
Correct Answer:
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