libby is considering two different positions within the same company. the first position, as a project…

libby is considering two different positions within the same company. the first position, as a project manager, offers a base salary of $70,000 with a potential performance bonus of up to 10% of the base salary. the second position, as a team lead, offers a base salary of $65,000 but comes with a guaranteed annual bonus of $8,000. which position would offer libby a higher potential maximum annual income?\nproject manager\nteam lead\nboth offer the same potential income.\nthe decision should be based on job responsibilities and growth potential.
Answer
Explanation:
Step1: Calculate potential income of Project Manager
Base salary of Project Manager is $70,000 and guaranteed annual bonus is $8,000. So total potential income = $70000 + $8000=$78,000.
Step2: Calculate potential income of Team Lead
Base salary of Team Lead is $65,000. Performance - bonus can be up to 10% of base salary. So maximum performance - bonus = 0.1×$65000 = $6,500. Total potential income with maximum bonus = $65000 + $6500+$8000 (guaranteed bonus)=$79,500.
Answer:
The Team Lead position would offer Libby a higher potential maximum annual income.