00:01
So here we're given a bunch of information about a store and its manager.
00:05
So first of all, we know stuff about how the business performed last year.
00:11
So we had $65 ,000 salary, just a fixed amount, and 12 ,000 profits before the salary.
00:24
So if we subtract those two, right, this implies that there are $55 ,000 of profits left over.
00:32
Which is the goal, right? so this year we've changed things up.
00:40
We instead made $280 ,000 in profits.
00:45
So profits have increased dramatically, and we're wondering if it's because of the compensation structure.
00:54
So now we have 30 ,000 salary, and we also have sort of incentive fees, right? profit share.
01:03
So we have 0 .15 times profits is equal to 0 .15 times 280 ,000.
01:14
And i have no idea what that is, but i'm going to multiply it out...