Matthew quit his job at State University where he earned $45,000 a year. To start a board game company, he cashed in his savings account that was earning $5,000 in interest annually. In the first year, the firm sold 10,000 units of his new board game at a price of $30 for each unit. The board game costs $10 each for production, packaging, marketing, employee wages and benefits, and rent on the production facility. The economic profits of Matthew's firm in the first year were:

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above