ABC company has 1,000 employees. The total annual base pay for all employees combined equals$8,500,000. Assume company's profit to be $50 million. Consider the following three formulas fordetermining the total profit sharing pool: 1. First-Dollar of Profits: The company agrees to share threepercent of all profits up to S25 million. 2. Graduated First-Dollar-of-Profits: The company agrees toshare four percent of all profits up to S20 million, and six percent of all profits up to $45 million. 3.Profitability Threshold Formula: The company agrees to share five percent of all profits above $20million up to $35 million.Calculate the total profit sharing pool for all three formulas noted below. TTotal profits under "First-Dollar of Profits" formula is :Total profits under "Graduated First-Dollar-of-Profits" is :Total profits under "Profitability Threshold Formula" is :

Profit sharing pool refers to that percentage of pre-tax profits that the Board decides to be made…

ABC company has 1,000 employees. The total annual base pay for all employees combined equals 58,500,000. Assume company's profit to be $50 million. Consider the following three formulas for determining the total profit sharing pool: 1. First-Dollar of Profits: The company agrees to share thre percent of all profits up to $25 million. 2. Graduated First-Dollar-of-Profits: The company agrees to share four percent of all profits up to $20 million, and six percent of all profits up to $45 million. 3. Profitability Threshold Formula: The company agrees to share five percent of all profits above $20 million up to $35 million. Calculate the total profit sharing pool for all three formulas noted below. T Total profits under "First-Dollar of Profits" formula is : Total profits under "Graduated First-Dollar-of-Profits" is : Total profits under "Profitability Threshold Formula" is :

ABC company has 1,000 employees. The total annual base pay for all employees combined equals 58,500,000. Assume company's profit to be $50 million. Consider the following three formulas for determining the total profit sharing pool: 1. First-Dollar of Profits: The company agrees to share thre percent of all profits up to $25 million. 2. Graduated First-Dollar-of-Profits: The company agrees to share four percent of all profits up to $20 million, and six percent of all profits up to $45 million. 3. Profitability Threshold Formula: The company agrees to share five percent of all profits above $20 million up to $35 million. Calculate the total profit sharing pool for all three formulas noted below. T Total profits under "First-Dollar of Profits" formula is : Total profits under "Graduated First-Dollar-of-Profits" is : Total profits under "Profitability Threshold Formula" is :

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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