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?© BrainMass Inc. brainmass.com October 1, 2020, 9:21 pm ad1c9bdddf
This solution discusses how compensation rewards are calculated.