Question

Four candidates from Universal Executive Search Inc. Are interviewed by CanAl Investment Company for the position of chief financial officer (CFO). The travel costs of the four candidates are $1,573.83, $2,175.56, $1,264.95, and $1,843.25. CanAl spent $4,500.00 on advertising and paid Universal Executive Search Inc. 20% of the starting salary. If CanAl spent $36,357.59 in total recruiting costs, what starting salary did it pay its new CFO?

Answer 1

Answer: $125,000

Explanation:

Let the starting salary be x.

To determine the starting salary, we have to add all the expenses paid together. This will be:

$1,573.83 + $2,175.56 + $1,264.95 + $1,843.25 + $4,500.00 + (20% × x) = $36,357.59

$11357.59 + 0.2x = $36,357.59

0.2x = $36,357.59 - $11357.59

0.2x = $25000

x = $25000 / 0.2

x = $125,000

The starting salary is $125,000.