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Peterborough Medical Devices makes devices and equipment that it sells to hospitals. The organization has a profit-sharing plan that is worded as follows: The company

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Peterborough Medical Devices makes devices and equipment that it sells to hospitals. The organization has a profit-sharing plan that is worded as follows: The company will make avallable a profit-sharing pool that will be the lower of the following two items: 1. 40% of income before taxes in excess of the target profit level which is 18% of net assets OR 2. 57 million. The individual employee is paid a share of the profit sharing pool equal to the ratio of that employee's salary to the total sabry paid to all employees. a) If the company earned $45 million of earnings before taxes and had net assets of 5100 million, what would be the amount avalable for distribution from the profit-sharing pool? Enter answer as a whole dollar amount. b) Suppose that Marg Watson's salary was $68.000 and that total salaries paid in the company were $25 million. What would Marg's profit share be? Round ratio of Marg's salary to all salaries to 5 decimal places. Round answer to whole dollar amount. 1

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