Jack earns an annual salary of 22,500 at Brats and Brew. The salary range for Jack’s position has a minimum of $20, 000 and a maximum of $30, 000.
By what percentage is Jack’s salary less or more than the midpoint?
a. 90%
b. -12%
c. 10%
d. -10%
Correct Answer is C.
We need to find the midpoint first by finding the average of $20, 000 and $30, 000 ($20,000 + $30,000 /2 = $25,000). The midpoint is $25, 000.
Next, we need to calculate the compa-ratio for Jacks’s salary by dividing his salary by the midpoint and multiplying by 100 to get the percentage figure ($22, 500 / $25, 000 x 100 = 90%). The compa-ratio is 90%.
Remember, we are to find by what percentage Jack’s salary is less or more than the midpoint. The midpoint is always 100%. Therefore, 100% subtracted from 90% is 10%. Jack’s salary is 10% less than the midpoint.
