Calculating Profit Sharing Pay Awards, In your new role as compensation analyst, you have been asked to estimate the dollar amount of the profit-sharing pool based on three approaches as well as the allocation of profit-sharing awards to eligible employees. The company's profits equal $35 million.

You are considering the following three formulas for determining the total profit-sharing pool.

First-Dollar of Profits: The company agrees to share 1.0 percent of all profits up to $12 million. Graduated First-Dollar-of-Profits:

The company agrees to share 2.5 percent of all profits up to $15 million, and percent of all profits up to $40 million.

Profitability Threshold Formula: The company will share 1.0 percent of the profits above $10 million up to $17 million.

There are 230 employees whose total annual base pay equals $2,100,000. The total profit-sharing pool for:

(Round your answers to the nearest hundredths place.)

Based on the equal payments formula, the average profit-sharing award per employee (based on the total profit-sharing pools) for: (Round your answers to the nearest hundredths place.) (a) First-dollar of profits is $ per employee (b) Graduated first-dollar-of-profits is $ per employee (c) Profitability threshold formula is $ per employee