Performance Measure - Profitability
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A+ 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 a manager's compensation is based on 75% of profits, what is his compensation for the current year?
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Solution Summary
This brief solution calculates the compensation for the current year using profit and stock value.
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