Net earning for owner after payment to top manager, last year = $(130,000 - 65,000) = $65,000
This year, out of the forecast profit of $270,000, Owner has to pay to the top manager = $35,000 + 16% x $270,000
= $(35,000 + 43,200) = $78,200
Net money earned by owner this year = $(270,000 - 78,200) = $191,800
Change in net owner's earning = $(191,800 - 65,000) = $126,800
