Question

Jerry's base pay is $40,000. The salary range for his position runs from $25,000 to $55,000. What is Jerry's compa-ratio?

- 2.00
- 1.50
- 1.00
- 0.75

Answer 1

Jerry's compa-ratio is calculated as his base pay divided by the midpoint of the salary range for his position, which equals 1.

Step-by-step explanation:

Jerry's compa-ratio is calculated by dividing Jerry's base pay by the midpoint of the salary range for his position. The midpoint is calculated by adding the lowest salary to the highest salary and then dividing by 2 which in this case is ($25,000 + $55,000) / 2 = $40,000. Jerry's compa-ratio is $40,000 (his base pay) divided by $40,000 (midpoint of the range), which equals 1. This means Jerry's pay exactly matches the midpoint of the salary range. So, the correct answer is 1.00.