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Fred Smith was hired on January 1 , 2 0 2 3 to manage x Y Z , Inc. a manufacturing company. As part of

Fred Smith was hired on January 1,2023 to manage xYZ, Inc. a manufacturing company. As part of Fred's employment arrangement, Fred will be paid a bonus of $2,000 for every 1% the company increases their net income from the previous year (2022 to 2023).
After coming on board, Fred reached out to the other senior vice presidents with concern that the company had been under producing product and missing potential sales, resulting in a significant opportunity cost for the company. In 2023, Fred increased production resulting in the following:
\table[[Net Income,2022,2023],[Units produced,$300,000,$450,000
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