Sheehan works for Andy Company and is a superior sales guy. His total compensation this year is $400,000. Andy sponsors an integrated profit sharing plan with a base percentage of 5% and a maximum excess percentage. It uses the current wage base as the integration level. What is the excess percentage that will be applied Sheehans compensation above the integration level?

1. 5%.

2. 5.7%.

3. 10%.

4. 10.7%.