Question

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. Multiple Choice $170,000 $50,000 $95,000 $87,500

Answer 1

Answer:

The manager's income if revenues are $2,000,000 and profits are $500,000: $95,000

Explanation:

The firm manager earns 0.5 percent of all sales. If revenues are $2,000,000 and profits are $500,000,

The firm manager earns from sales = $2,000,000 x 0.5% = $10,000

The manager has a base salary of $85,000

The manager's income = manager 's base salary + earns from sales = $85,000 + $10,000 = $95,000