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    Compensation in Consulting

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    Consulting rewards its managers based on performance. A measure of performance is profitability. Another measure may be growth in stock value. Profit has decreased by 50% from the prior year amount of $80,000. Stock value has increased by 20% from its prior year level of $200,000. If the manager's compensation is based on 25% of the value of stocks, what is his compensation for the prior year?

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    Solution Summary

    This solution discusses how compensation rewards are calculated.