the questions come together, they are a two part question. please show the work and where to put it on the graph. thank you. The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company afterfive years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 60% of company profit. Beyondthe first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of$150,000.On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levelsof $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000.MANAGER SALARY (Thousands of dollars)250225200175150125100755025050100150200250ANNUAL COMPANY PROFIT (Thousands of Dollars)300Total VP Salary The vice president has the option to purchase the company after five years. The purchase price for the company is set at 4 times earnings (profit),computed as average annual profitability over the next five years. In five years, the company is expected to be worth $10 million.PARTUAL VUT FELIUus UOn the following graph, use the green points (triangle symbols) to plot the vice president's expected profit from buying the company, for averageannual profitability levels of $0, $500,000, $1,000,000, $1,500,000, and $2,000,000.PROFIT FROM PURCHASE OF COMPANY (Millions of dollars)3500000 1000000 1500000 2000000ANNUAL COMPANY PROFIT (Dollars)2500000Profit from Buying Company?

From the given scenario, it can be easily identified that when the firm earns zero profit in the…

The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 60% of company profit. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of $150,000. On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levels of $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000. ?

The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 60% of company profit. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of $150,000. On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levels of $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000. ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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