Recently the owner of a trader joes franchise decided to

Reference no: EM13378773

Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000, and her store made $120,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $30,000 plus 15% of the store's profits. Since the change, the store is performing much better, and she forecasts profits this year to be $280,000 (again, not counting the payment to her top manager). Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?

Reference no: EM13378773

Questions Cloud

Consider an individual earning 1000 per month who also : consider an individual earning 1000 per month who also receives 100 per month in food stamps they can only be exchanged

1 financial markets make it possible for those who : 1. financial markets make it possible for those who have saved money to earn a reward by providingthe financing

1 a whoey option pays the difference between the final : 1 a whoey option pays the difference between the final price and the maximum price of a stock over the period of the

Find the following values for a single cash flowa the : find the following values for a single cash flowa the future value of 500 invested at 8 percent for one yearb the

Recently the owner of a trader joes franchise decided to : recently the owner of a trader joes franchise decided to change how she compensated her top manager. last year she paid

Consider that an entrants ability to enter a market is : consider that an entrants ability to enter a market is fought with the possibility of withdrawing from the industry at

Suppose that a closed economy with no government has the : suppose that a closed economy with no government has the following consumption-income scheduleincome in million

Find an article from the media internet newspapers : find an article from the media internet newspapers magazines etc. on a current event that addresses an economic concept

Tish discovered that her garage actually sits over the : tish discovered that her garage actually sits over the property line and is two feet onto the property of her neighbor.

User Account

All Pages