I know the answer is 7.8% – what is the formula?millions) = $400. What percentage of the CEO’s total earnings are tied to profits of the firm.

Suppose compensation is given by W = 512,000 + 217X(Profits)+ 10.08S, where W = totalcompensation of the CEO, X = company profits (in millions) = $200, and S = Sales (in millions) = $400.What…

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