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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

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 for determining the total profit sharing pool: 1. First-Dollar of Profits: The company agrees to share three 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.

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 :

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