Suppose compensation is given by W = 450,000 + 220 ? + 15S, where W = total compensation of the CEO, ? = company profits (in millions) = $300, and S = sales (in millions) = $500. What percentage of the CEO's total earnings is tied to profits of the firm?
A. 43.4 percent
B. 12.6 percent
C. 7.9 percent
D. 6.0 percent
Answer: B
Economics
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What will be an ideal response?
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