The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is...
The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of the first $150,000 profit, and then 10% of profit over $150,000. Purchase price for the company is set at 4.5 times earnings (profit), computed as average annual profitability over the next five years.
PLOT the annual compensation of the vice president as a function of annual profit?
Homework Answers
It is given that compensation of the
new vice president is a flat salary plus 75% of the first $150,000
profit, and then 10% of
profit over $150,000
Let the flat salary be "L, 'M' be profit between $1 and $150,000
and 'N' be profit over $150,000. Annual compensation
of the vice president as a function of annual profit shall
be:
L; for annual profit less than $0;
L+ (M x 75%); for annual profit between $1 and $150,000;
L + (M x 75%) + (N x 10%); for ann ual profit over $150,000.
Vice President's Annual compensation
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The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is...
The owners of a small manufacturing concern have hired a vice president to run the company...
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Subject: HRM
Introduction and Instructions
You have recently been hired as the Director of Human Resources
for Wilson Brothers Canada and have HR responsibility for all of
the company’s Canadian operations. Bob and John Wilson have asked
you to prepare a report for their review focusing specifically on
organizational behavior within the company. Review the Wilson
Brothers Case Scenario in depth and address the required topic
listed below in your analysis report. Marks are allocated for
thoroughness of coverage of...
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