Question: Problem 0 6 - 2 7 ( algo ) Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top
Problem algo
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 $ and her store made $ in profits not counting payment to her top managen She suspected the store could do much better and feared the fixed salary was causing her top manager to shick on the job. Therefore, this year she decided to offer him a fixed salary of $ plus of the store's profits. Since the change, the store is performing much better, and she forecasts profits this year to be $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?
$
Does the manager make more money under the new payment scheme?
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